A major consequence of the ongoing rate rises is that the number of Australians defaulting on their home loans has surpassed the mortgage stress peaks during the Global Financial Crisis. Borrowers can’t take this hit lying down though, they need to be proactive, and spring clean their finances to make sure they’re on the best… Read more »
Borrowing power has plunged over $260,000 for some Australian families, trapping many mortgagees that can’t qualify for better rates, and hampering house hunter hopefuls. Lenders have been far more cautious in an effort to offset the risk of recession and higher rates that could impact long-term serviceability. Fixed rate borrowers who have just had their… Read more »
Beware: easier eligibility for a home loan doesn’t necessarily translate to a better deal. Higher interest rates not only bring higher mortgage repayments but, for new borrowers, the amount that can be borrowed falls. That’s because when the banks assess a borrower’s eligibility to repay the loan they stress test the applicant by assessing their… Read more »
The RBA knows that any decision whether to raise or pause interest rates is tricky because you don’t want rate hikes to tip the economy over the edge into recession. This week they took a gamble by lifting rates another 0.25 per cent to 3.85 per cent. The Board has now delivered an incredible 375bp… Read more »
Yes, rising interest rates stealthily reduce your borrowing capacity. Fortunately there are a few simple things you can do to increase it. I’ve talked about this a few times over the last couple of months. Not only do rising interest rates increase loan repayments, they also reduce your borrowing capacity because the so-called “serviceability test”… Read more »
Existing bank home loan customers are being financially screwed like never before. But it’s up to you to fight with your bank. For example, if someone took out one of the big four banks’ lowest variable rates this time just last year they would now be on a rate that is, on average, 0.44 per… Read more »
A big week for getting a temperature on the economy leading into Tuesday’s RBA interest rate decision… and that pesky Aussie inflation figure looks to be heading in the right direction. Consumer prices, CPI, rose 0.2 per cent in October and 6.9 per cent over the year, which is slowing down and came in well… Read more »
Instead of just accepting the current wave of repayment increases from your bank, it can be really worthwhile to look around for a better deal and refinance. And lots of people are doing just that. A record breaking $18.88 billion of loans were refinanced in August, while $201 billion worth of home loans have switched… Read more »
As the dust has now settled after last week’s interest rate hike by the Reserve Bank, economists have been reassessing just how many more hikes are to come in this interest rate cycle. Three of the big four banks have revised their forecasts, after the lower than expected 0.25 per cent RBA October rate hike.… Read more »
Those on a fixed-rate mortgage could be in for a huge shock when their fixed term ends. RateCity analysis of the big four bank half-year results and APRA loan book data show approximately 38 per cent of home loans are currently fixed, in dollar terms, with the peak of people coming off their fixed rates… Read more »
