Could Interest Rates Discourage Australians From The Property Game?

19th April 2022

Could Interest Rates Discourage Australians From The Property Game?

As the first RBA rate rise in more than a decade looms, experts have weighed in on the short-term outlook of the property market in the face of rising interest rates. Chad Hoy Poy, National Lending Manager gives his comments in the article.

Chad Hoy Poy, National Lending Manager at non-bank lender WLTH, said the gulf between variable and fixed rates is growing.

“Currently, some of the big-four’s three-year fixed rates sit in the low to mid 4% range, yet you can still get 80% variable rates around 2.09% which means these variable rates would need to increase by around 2% before the rate became equal to a current three-year fixed,” Mr Hoy Poy told Savings.com.au.

“Home buyers locking in a rate now might find they are just locking in the expected increases over the next 18-24 months.”

Full Article: Savings.com.au

19th April 2022