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 »
This week the Reserve Bank (RBA) started to rebuild its credibility and get ahead of the inflation curve by lifting official interest rates by a higher than expected 0.5 per cent to 0.85 per cent… the biggest rate hike in 22 years. It follows well behind similar rate rises by Central Banks in the UK,… Read more »
The housing affordability ‘crisis’ has been in the media for months, but all is not what it seems. I know, I’m just as surprised as you. But these are the facts. It goes against every report in the media – and what every adult child is telling their parents – that it has never been… Read more »
Let’s go through the facts and disprove some of the mistruths currently being sprouted by the media and politicians about interest rates. Yes, the Reserve Bank surprised everyone by raising official interest rates 0.25 per cent (instead of the expected 0.15 per cent) to 0.35 per cent. Yes, home loan monthly repayments will rise almost… Read more »
How much interest rates will rise is the big question and each of the big banks have a slightly different answer… but they all agree the first rate increase will be June. Westpac’s economic team is now predicting the cash rate hikes will start in June and hit 2 per cent by June the following… Read more »
The Big 4 bank economists are forecasting interest hikes to begin between June and September. So what should you do to prepare for upcoming increases to your mortgage repayments? This week’s Reserve Bank (RBA) board meeting, kept official interest rates on hold as expected. But it was their language that attracted attention. Up until now… Read more »
While it feels like a major hassle, the fact remains that refinancing your home loan is often the only way to get a good deal. According to digital mortgage broker Finspo, the average home loan duration is surprisingly short at 4-5 years. It’s not that people are powering through their mortgage and paying it off… Read more »
In times like these, when there is great uncertainty about what will happen to interest rates, borrowers get lots of advice about whether to go fixed or variable. Unfortunately, a lot of it is not well founded. For example, anyone who tells you to lock a fixed rate mortgage now before rates rise, is basically… Read more »
I’m all for helping first home buyers get into the property market, as long as it’s done the right way at the right time. I’m not sure the Home Guarantee Scheme is it. I get concerned when help for first home buyers happens at a time when property values are falling (in Sydney and Melbourne)… Read more »
