The Reserve Bank has lifted the cash rate to 4.6%, its highest level in 15 years. While interest rates have returned to levels last seen in 2011, the Australian property market looks vastly different today.
Fifteen years ago, buyers faced similar borrowing costs but significantly lower property prices, lower household debt and a more favourable affordability environment. Since then, home values across Australia’s major cities have more than doubled, while wages have increased at a much slower pace, making it increasingly challenging for many Australians to enter the property market.
For today’s home buyers and homeowners, the challenge isn’t simply higher interest rates. It’s the combination of elevated property values, larger mortgage sizes and ongoing cost-of-living pressures. As borrowers adjust their budgets, review their loan structures and explore refinancing opportunities, understanding how affordability has changed over the past decade and a half can help put the current market into perspective.
Read the full article here.
Anthony Landahl | Managing Director Equilibria Finance
This is for general information purposes only and does not constitute advice. With all of these options there are a number of considerations outside the scope of what is covered in this article that you need to understand to ensure your personal circumstances are taken into consideration.
Equilibria Finance is a mortgage broking practice specialising in delivering residential and commercial mortgage and business and asset finance solutions to the clients of financial advice and accounting practices.
