Australian Banks Increase Mortgage Rates – Might Halt First Home Buyers
Within three days of the Reserve Bank of Australia lifting the official cash rate by 25 basis points to 4.0 per cent last week, 26 lenders had passed on interest rate rises on 175 home loan products, according to financial comparison website RateCity.
Banks are looking to move the mortgage rates on hike.Which makes the potential first home buyers will surely re think before making any judgement on it.
As according to the mortgage choice 2010 Mortgage Choice First Homebuyers Survey stats :
If interest rates rise by two percentage points, more than one quarter of Australians looking to buy their first home in the next two years will give up on the purchase.
But will it stop people from going to it, no as despite this problem, a significant number (78%) were planning to make lifestyle sacrifices in order to purchase, an increase on the 71% in the 2009 survey.
While according to the abs.gov.au(Australian Bureau of Statistics)
For both South Australia and Australia, the average loan size of the non-first home buyers purchasing component is consistently higher than non-first home buyers who are refinancing. In January 2009, the average loan size for the South Australian non-first home buyers purchasing component was $213,400 while for refinancing it was $191,500.
In December 2009, the average loan commitment for first home buyers in South Australia was $242,500; an increase of 4.6% over the November estimate and 11.9% higher than the average loan size for non-first home buyers ($216,800). The average loan commitment of first home buyers is now only 9.6% below the peak of March 2009 ($268,300).
Have a full review here
http://www.mortgagechoice.com.au/about-us/media-releases/survey-first-homebuyers-may-be-scared-off-by-small-rate-rises.aspx