Buffer Rate
Your Borrowing Power Has Gone Down – Here’s Why
Summary Australians see a big drop in borrowing capacity, with a 32.58% decrease since 2020 and an 8.17% fall from last year, largely due to a rising RBA Cash Rate. Select lenders with low buffer rates (down to 2%) offer a glimmer of hope to boost borrowing capacity. A...
Read morefolderCategory: Borrowing Power, Buffer Rate, cash rate, News, Property Market
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How A 0.5-point Increase In Interest Rates Affects Your Borrowing Power
Rising interest rates affect more than just monthly repayments and the total cost of a home loan. They also reduce the borrowing power of anyone looking for a home loan. The effect is more pronounced than you might think due to serviceability buffers. A serviceability buffer...
Read morefolderCategory: Buffer Rate, Mortgage News
bookmarkTags: buffer rates, Cash Rates, Interest Rates