Mortgage stress on horizon after RBA cash rate hits 2.85 per cent

HOMEOWNERS in Newcastle and Lake Macquarie are set for more mortgage pain after the Reserve Bank Australia handed down a seventh consecutive cash rate hike on Tuesday.

Homeowners in Newcastle and Lake Macquarie could pay an extra $106 a month on their mortgage after the RBA lifted the cash rate a further 25 basis points to 2.85 per cent on Tuesday.

As predicted, the RBA lifted the cash rate a further 25 basis points to 2.85 per cent, up from a record low 0.1 per cent at the start of May.