Ballarat Cost of Living Survey: ninth rate rise bites

With many people having to account for more money in their monthly budget than ever before, a recent survey of 138 readers of The Courier found the cost of essentials were the most worrying thing for the people of Ballarat.

A whopping 83 per cent of people surveyed said they found managing expenses on essentials and utilities to be a major concern.

People appear to be dealing with this by following stricter shopping practices, as 62 per cent of responders said they had stripped their grocery budget to only include necessary items.

Another popular method of cutting costs was to hunt for the cheapest fuel, with this being popular with seven in ten people surveyed.

Other actions people took to cut costs included switching to be more energy efficient, 44 per cent, changing phone and internet provider, 36 per cent, and changing gas or power provider, 26 per cent.

Expenses on essentials and utilities were of greatest concern to younger shoppers aged between 18 and 29 years of age, and to older people over 60.

People between the ages of 30 and 59 were more likely to be concerned by mortgages on homes and property, which was the second biggest issue arising from the poll.

Nine consecutive interest rate rises have been adding increasing pressure to people's home loans.

The RBA has now increased the cash rate by 25 basis points to 3.35 per cent, meaning people with $500,000 mortgages are having to find an extra $76 per month for repayments.

This is now $908 more per month than what people were paying when interest rates first rose in May 2022, and means borrowers are now having to find nearly $11,000 extra in their yearly budget compared to 12 months ago.

For those with a $750,000 loan, this will mean having to pay an extra $114 a month or $1362 since the RBA started lifting rates.

People will need to find an additional $16,344 a year to keep up with their mortgage repayments.

According to The Courier survey 44 per cent of Ballarat responders are currently under mortgage stress, while 55 per cent believe they will experience some form of stress in the next 12 months.

The cost of living crisis is also affecting those looking to enter the property market. Seven out of ten who were looking to buy homes before the crisis emerged have had to reconsider their decision.

But the pressure on homeowners and those looking to enter the market shows no sign of abating, the RBA said in a statement more rises were on the horizon as it attempts to curb inflation.

To combat interest rate hikes 29 per cent of people surveyed said they were looking to refinance their loans to reduce repayments.

The Courier Cost of Living Survey was generated for the property market and sponsored by the City Oval Hotel.

Recent statistics released by the ABS revealed recent months have seen "record-high refinancing activity" by owner-occupiers and investors.