Easing lending rules would make it easier for first home buyers, but would it create financial instability?
As the Reserve Bank meets to consider whether to follow in America's footsteps and cut interest rates, housing affordability is again centre stage of the political debate. They point a worsening picture of mortgage stress picture now that the Reserve Bank has raised the official cash rate to 4.35 per cent and variable interest rates are hovering around 6 per cent. She says while RBA data might show that home loan defaults are only at around 1 per cent, "that really does understate the level of financial strain that people are experiencing". For first-home buyers who buy an existing property, BarrenJoey estimates the interest rate charged would fall by about 0.14 per cent. Its modelling also suggests that these potential changes to mortgage risk weights would also lead to a small increase in borrowing capacity for first-home buyers of about 1 per cent to 3 per cent.
HomeBuilder and first home buyer grants made housing less affordable says Reserve Bank
A decade of savings isn’t enough for most first home buyers, as deposits soar out of reach
Reserve Bank 'prepared to be patient' as interest rates kept at record lows into 2022
Home loan crackdown appears imminent as Treasurer, regulators discuss house price surge
Australia's riskiest suburbs for home loans revealed as banks push for higher deposits
Discover Related
Australian PM Albanese's party vows to help more first-time buyers in tight election race
Indian banks expected to see loan growth of 12-14 per cent in FY26: Report
Average US rate on a 30-year mortgage dips to 6.65% after rising for 2 weeks
Loan Growth Slowed in Q3 on Weak Demand
Choice of buy-to-let mortgage deals reaches highest point on website’s records
January home sales fall as high mortgage rates, prices freeze out would-be buyers
Some sub-4% mortgages will vanish from the market from Friday
Affording a home almost impossible for first-time buyers without savings, help
Australia to ban foreign purchase of built homes
Australia to ban foreign purchase of built homes
Personal loan defaults: 7 key reasons behind the alarming trend
How banks are responding to Reserve Bank decision to cut interest rates