Following February’s decision to enact a ninth consecutive cash rate increase, Australia’s central bank has made its latest monetary policy call. At its annual monthly board meeting, the Reserve Bank of Australia (RBA) opted to take the number of cash rate raises into double figures, raising the figure by 25 basis points to 3.60 per cent. The […]
Worsening financial conditions will motivate elderly home owners to downsize sooner than expected, according to a non-bank lender. Bridgit chief executive Aaron Bassin has predicted that the current economic environment will trigger property movement throughout the year in order to free up equity to support them through the cost-of-living crisis, avoid increased mortgage repayments, and “live […]
An expert warned that the rental crisis affecting the country is set to “get even worse”, as the Reserve Bank’s rapid rate rise cycle continues to have a “crippling impact” on lending to property investors. The latest data from the Australian Bureau of Statistics (ABS) showed lending to property investors fell by a staggering 34.8 […]
Despite confidence surrounding the housing sector taking a hit from rate hikes in 2022, Herron Todd White (HTW) is optimistic that rate cuts during the second half of 2023 will bring increased stability to the market. In its latest Monthly Review, Kevin Brogan, the national director of group risk and compliance, said that the confidence […]
Even with financial stress growing among many Australian households in the face of rising interest rates and inflation, there are methods to relieve these pains. The Reserve Bank of Australia’s (RBA) first cash rate decision of the new year, where the regulator opted to lift the cash rate by 25 basis points to 3.35 per cent, has […]
Two months after its last meeting, the Reserve Bank of Australia (RBA) has delivered its debut cash rate decision of the new year. With recent Australian Bureau of Statistics (ABS) consumer price index (CPI) data suggesting inflation needs further stifling, Australia’s central bank decided at its monthly board meeting to raise the official cash rate […]
As higher interest rates are expected and the property market demand eases, economists expect further price falls in the coming months. Australian home values have dropped 8.40 per cent since May 2022 to December 2022, since the property market hit its peak in May last year, according to CoreLogic. CoreLogic Economist Kaytlin Ezzy said the current downturn […]
Increased borrowing costs and tight serviceability requirements have contributed to a decline in new housing lending, with further reductions expected. Industry commentators have raised concerns that increased borrowing costs and serviceability requirements will prevent more borrowers from entering the property market. The Australian Prudential Regulation Authority (APRA) raised the serviceability buffer in October 2021 from […]
The release of the Australian Bureau of Statistics’ (ABS) latest Consumer Price Index (CPI) yesterday (11 January), which covers November 2022, has resulted in one industry leader imploring the Reserve Bank of Australia (RBA) to pause interest rate increases. According to the latest figures, the monthly CPI indicator rose 7.3 per cent in the 12 […]
“Overextended” borrowers with larger home loans rushed to refinance in October as rapid rate hikes eat into their pockets, according to Joust. Australian home loans marketplace Joust has released data from its live auction service, which revealed a 6.15 per cent spike in the size of loans accessed nationwide in its refinance category for the […]