The Reserve Bank of Australia (RBA) has increased the cash rate for the sixth month in a row, taking it from 0.10 per cent in April to 2.85 percent with November’s 25-basis-point increase. With rates rising, repayment pain for borrowers has increased. The impact of the higher interest rates is also seen in property values, as house prices have been falling at a faster pace each month. Expectations that the trend will continue have smashed consumer confidence.
How Does The Cash Rate Hike Affect My Monthly Repayment?
The following chart compares monthly repayments before and after the most recent cash rate hike. (These example loan repayments were determined using our repayment calculator, based on the lowest variable rate we can offer over a 30-year term, as of 1 November 2022. Rates are subject to change from this date.)
|Loan Amount||Before Increase (4.11%)||After Increase (4.36%)||Difference|
The Housing Values Continue To Decline
The following chart compares the rate of housing value decline in September and 31 October.
|Change in dwelling values|
Should I Buy The Property Now?
The right time to buy a house isn’t always when it’s in your favour. Waiting for the perfect opportunity could lead you to miss out on buying an affordable property, or being priced out of properties that are currently available and within reach!
If you’re unsure whether you should buy right now or wait, Home Loan Experts’ mortgage brokers will help you make the right decisions. Call us on 1300 889 743 or enquire online today.