Will they keep rising??

Q.

I have a large mortgage with St George at 8.57% and I am just handling it. If the banks and the RB keep hiking up rates then I will have to sell and go back to renting. I have worked out that I can probably withstand another 1% increase before I need to seriously make a decision. Are rates going to keep going up from the RB and/or from St George? Is the property outlook for the Sydney eastern suburbs as bad as what people are saying? Is it worth holding on given that I live in a beautiful street in a great unit, close to all the right places - beaches, trains, buses shops etc?

You should try to hang on to your property at all costs as it will cost you at least $40,000 to sell, move and then re-buy. Fortunately it appears we are close to the top of the rate cycle.