Sunrise host Nat Barr unleashes on Anthony Albanese’s government after interest rate rises force family to sell dream home

Treasurer Jim Chalmers has come under fire from Sunrise host Natalie Barr over the rising cost of living after a young Aussie family was forced to sell their home to make ends meet.

Cash-strapped mortgage holders breathed a sigh of relief on Tuesday after outgoing Reserve Bank of Australia boss Philip Lowe kept interest rates on hold for a second consecutive month.

The decision came too little too late for one family after mortgage repayments for their dream Brisbane home doubled.

Landscape gardener Alex Mackley was able to provide for his young family and afford the mortgage on his $1,179 weekly income a year ago.

But after 12 interest rate rises, the family were forced to sell their home and downsize after mortgage repayments soared to $600 week.

The federal treasurer was grilled by Barr and was asked what message he had for families such as the Mackleys, who can no longer pay for their mortgages.

Treasurer Jim Chalmers (right) came under fire from Sunrise host Nat Barr (left) on Tuesday

Treasurer Jim Chalmers (right) came under fire from Sunrise host Nat Barr (left) on Tuesday

Treasurer Jim Chalmers (right) came under fire from Sunrise host Nat Barr (left) on Tuesday

Mr Chalmers acknowledged a lot of families are ‘under the pump.’

‘What I say to that family and to families doing it tough right around Australia is that the government’s number one priority is to provide this cost of living help,’ he said.

‘At the same time, we take our responsibilities when it comes to the fight against inflation.

‘We’re rolling out this cost of living help, we’re getting the budget in much better nick to take the pressure off inflation… and we are making some progress when it comes to inflation moderating in our economy, but it is still too high.’

‘And that means that we will continue to work as hard as we can around the clock to take some of the edges of these pressures the people are feeling.’

An unimpressed Barr continued with the tough questions.

She pointed out that calls to the national debt are up 30 per cent and that families have resorted to using the credit card to pay for household costs.

Barr added that interest rate rises have forced one in ten homeowners to sell their homes at a loss only two years after purchase.

‘So, what exactly is your cost of living help to those people?’ the Sunrise host asked.

The Reserve Bank has left interest rates on hold for a second straight month after inflation fell

The Reserve Bank has left interest rates on hold for a second straight month after inflation fell

The Reserve Bank has left interest rates on hold for a second straight month after inflation fell

Mr Chalmers pressed on with spruiking the government’s rollout of cost of living relief.

‘Whether it’s making childhood education cheaper… Commonwealth Rent Assistance… making medicines cheaper and making it easier to find a bulk-billing doctor, we’ve got electricity bill relief rolling out right now,’ he said.

‘We are seeing inflation come off a bit but we do understand that it is still too high for too many people and the people are doing a tough, and that’s why the government’s number one priority is rolling out this cost of living help.’

‘Really, right across the board, we’re acting in a responsible and methodical way to take some of the edge of these cost of living pressures that people are confronting, which we understand are putting them under quite substantial pressure.’

He refused to weigh into the divided debate whether interest rates would continue to rise.

‘My responsibility is to roll out this cost of living relief and to get the budget into better nick and take the pressure off inflation,’ the treasurer said.

Dr Philip Lowe's seven-year term as RBA boss ends next week. He's pictured with deputy and successor Michele Bullock (left)

Dr Philip Lowe's seven-year term as RBA boss ends next week. He's pictured with deputy and successor Michele Bullock (left)

Dr Philip Lowe’s seven-year term as RBA boss ends next week. He’s pictured with deputy and successor Michele Bullock (left) 

Mr Chalmers later told reporters that families who are financially struggling should ‘engage with their banks.’

The Reserve Bank of Australia has left the cash rate on hold at an 11-year high of 4.1 per cent for the second straight month.

Three of Australia’s Big Four banks – Commonwealth, Westpac and ANZ – believe the rate increases are over but National Australia Bank is predicting another rate hike in November that would take the cash rate to a 12-year high of 4.35 per cent.

While inflation moderated to six per cent in June, down from an annual pace of seven per cent in the March quarter, it still remains well above the RBA’s two to three per cent target.

Annual mortgage repayments surge in little more than a year

$500,000: Up $14,832

$600,000: Up $17,796

$700,000: Up $20,748

$800,000: Up $23,724 

$900,000: Up $26,688 

$1,000,000: Up $29,664 

Source: Reflects a Commonwealth Bank variable rate for a borrower with a 20 per cent mortgage deposit climbing to 6.49 per cent, up from 2.29 per cent to reflect the Reserve Bank cash rate climbing to 4.1 per cent, up from 0.1 per cent

Source: | This article originally belongs to Dailymail.co.uk

Content source – www.soundhealthandlastingwealth.com

Leave a Comment

Your email address will not be published. Required fields are marked *