Home loan crackdown appears imminent as Treasurer, regulators discuss house price surge
3 years, 2 months ago

Home loan crackdown appears imminent as Treasurer, regulators discuss house price surge

ABC  

The Treasurer has given the strongest indication yet that a home loan crackdown is looming, confirming that surging house prices were a key topic of discussion at a regulators' meeting on Friday. Key points: Treasurer Josh Frydenberg says the Council of Financial Regulators discussed the recent surge in home prices last week Analysts expect the council to announce new home lending restrictions before the end of this year The last time home lending rules were tightened property prices fell, especially in Sydney and Melbourne The typical Australian home has seen its value climb more than 18 per cent over the past year, with some cities and many regional areas seeing even larger price jumps. "Given investors still proportionally make up a low proportion of housing finance, it makes sense that the nature of macroprudential regulation through the current cycle would be different to what was observed through the previous cycle of 2012-2017, when investor participation peaked at 45.2 per cent," she told ABC News. "Looking to the past, 2012-2017 saw extended periods of strong dwelling value growth amid falling interest rates, and macroprudential measures probably had the effect of cooling housing market conditions indirectly through tighter financing conditions," she noted. CoreLogic's analysis shows that the 10 per cent speed limit on investor lending growth may have knocked 3.4 per cent off the Sydney market and next to nothing from Melbourne prices.

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History of this topic

Easing lending rules would make it easier for first home buyers, but would it create financial instability?
1 month, 2 weeks ago

Easing lending rules would make it easier for first home buyers, but would it create financial instability?

ABC  

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 …

The cheapest home loan interest rate in Australia as banks slash rates
2 months, 3 weeks ago

The cheapest home loan interest rate in Australia as banks slash rates

Daily Mail  

Australian borrowers tempted by lower fixed rate mortgages should not jump in too soon, amid predictions of even better deals on offer in 2025. Macquarie Bank on Thursday slashed its two and three-year fixed rates by 20 basis points to 5.39 per cent - now Australia's lowest mortgage rate outside of a green loan. But their lowest fixed rates are …

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk
1 year, 2 months ago

A rising number of households on the cusp of financial stress, but RBA says banking system isn't at risk

ABC  

Australian homes and businesses are vulnerable to financial stability risks as rising inflation and interest rates continue to pressure the global economy. Key points: Australia's financial system is well-placed to deal with global economic shocks The share of households falling behind on their mortgage payments has picked up a little Despite rising rates, the vast majority of households are servicing …

Reserve Bank unlikely to lift rates in October despite inflation uptick as more households brace for mortgage cliff
1 year, 2 months ago

Reserve Bank unlikely to lift rates in October despite inflation uptick as more households brace for mortgage cliff

ABC  

A "slight uptick" in inflation is unlikely to see the Reserve Bank lift rates at its October meeting, but more than half a million households facing the looming fixed-rate mortgage cliff are being warned to brace for higher repayments. Key points: An increase in August inflation data is unlikely to see the RBA lift rates next week but it could …

The Mortgage Trap: Help us investigate lending practices in Australia
1 year, 7 months ago

The Mortgage Trap: Help us investigate lending practices in Australia

ABC  

During the pandemic, as house prices surged, many Australians took out very large home loans while interest rates were at historic lows. We want to know whether improper lending practices have contributed to the current financial stress that borrowers are experiencing. We want to examine whether existing policies and regulations provide adequate protection for consumers, or whether they need to …

The brutal truth of Australia's monetary policy: Higher interest rates are coming, and it will hurt some more than others
1 year, 10 months ago

The brutal truth of Australia's monetary policy: Higher interest rates are coming, and it will hurt some more than others

ABC  

No one wants to be in a dentist's waiting room. "If people start to think inflation's going to be 7 or 8 per cent the year after next then we're going to have all sorts of trouble." "We are getting more concerned, though, that the RBA is raising rates too far in response to inflation which is a lagging indicator …

Has Australia's housing boom hit the end of the road and could it take the economy down with it?
1 year, 11 months ago

Has Australia's housing boom hit the end of the road and could it take the economy down with it?

ABC  

While Argentina may have dispatched Australia to go on and win football's World Cup, there is one kicking contest where we are undisputed world leaders – that's economic can kicking. Many fixed mortgage rates were below 2 per cent, some for terms as long as four years, and the Reserve Bank governor had said repeatedly that rates were unlikely to …

A 30 per cent house price fall 'unlikely' with RBA tipped to cut interest rates in late 2023
1 year, 11 months ago

A 30 per cent house price fall 'unlikely' with RBA tipped to cut interest rates in late 2023

ABC  

It's the question that most Australians want an answer to. Signs of a weaker housing market: property listings are 'abnormally low' Economists had been predicting a 15–20 per cent fall in property prices since the Reserve Bank started increasing interest rates in May. Shane Oliver says with house prices already down by about 8 per cent from their pandemic high, …

A fork in the road for mortgage borrowers: Spend cash buffers to meet higher repayments or cut back on spending?
2 years ago

A fork in the road for mortgage borrowers: Spend cash buffers to meet higher repayments or cut back on spending?

ABC  

Money is being re-directed away from millions of Australians' bank accounts. It's that moment when you discover the majority of the Reserve Bank's interest rate increased have now been applied to your home loan and extracted from your bank account. According to RateCity, if you factor in the entire 2.75 per cent Reserve Bank rate increases, the total extra monthly …

Why two-thirds of Australian home borrowers need to be worried as interest rates keep rising
2 years ago

Why two-thirds of Australian home borrowers need to be worried as interest rates keep rising

Daily Mail  

Two-thirds of Australian home borrowers with a variable mortgage will be hit with more interest rates rises in coming months as ANZ predicts an 18 per cent house price plunge - but at least inflation may be easing. Two-thirds of Australia home borrowers with a variable mortgage will be hit with more interest rate rises in coming months - with …

Mortgage approvals fall to lowest level since Covid hit
2 years ago

Mortgage approvals fall to lowest level since Covid hit

The Telegraph  

The mortgage market chaos following Liz Truss's mini-Budget pushed down approvals for home loans to their lowest level in more than two years in October. The figures cover the period immediately after Kwasi Kwarteng delivered the mini-Budget when lenders withdrew hundreds of mortgage products and rates were pushed up in response to expectations for aggressive Bank of England action. Forecasters …

Gov't could decrease mortgage lending limit due to higher living expenses
2 years, 2 months ago

Gov't could decrease mortgage lending limit due to higher living expenses

NL Times  

Budget institute Nibud will likely advise the government to reduce the mortgage lending limit next year. Inflation and skyrocketing energy prices mean that living expenses are rising fast, so people should lend less to avoid getting into financial trouble, Het Parool reports. But the unprecedented high energy prices and inflation will probably mean Nibud will restrict the maximum amount people …

House prices to fall by as much as 15pc if interest rates hit 6pc
2 years, 2 months ago

House prices to fall by as much as 15pc if interest rates hit 6pc

The Telegraph  

House prices will fall by as much as 15pc as higher interest rates slash buyers’ spending power, economists have warned, while the number of homes sold risks collapsing from 1.2m per year to just 800,000. Capital Economics and Credit Suisse both estimate prices could fall by between 10pc and 15pc if interest rates rise to 6pc as financial markets predict. …

New homebuyers enticed into market now face perfect financial storm
2 years, 4 months ago

New homebuyers enticed into market now face perfect financial storm

ABC  

Farheen Khan and her husband Faizan Afzal are about to achieve the great Australian dream — buying a home where their children can grow up, with nearby parks and a good school. Key points: Big government incentives in 2020 lured first homebuyers into the market But those same incentives also helped drive up housing costs Now rising interest rates are …

Mortgage borrowers and renters told to brace for big financial hit by December
2 years, 4 months ago

Mortgage borrowers and renters told to brace for big financial hit by December

ABC  

The full budget impact of the second most aggressive interest rate hiking cycle in the Reserve Bank's history is still months from being felt by millions of households. Key points: Economists are warning home loan customers have only felt the impact of the first RBA rate hike That's because there's a lag between when it announces a hike and when …

Interest rate rises will see property prices fall further as maximum home loan sizes shrink
2 years, 4 months ago

Interest rate rises will see property prices fall further as maximum home loan sizes shrink

ABC  

Property prices may be dropping but that doesn't mean that wannabe home owners are suddenly celebrating. Key points: The Reserve Bank is set to hike the cash rate again today Banks are already winding back mortgage limits as interest rates and inflation rise Mortgage brokers say a 'feedback loop' is emerging in the property market Lenders are simultaneously winding back …

APRA warned Albanese government about 'heightened' housing risks as interest rates rise
2 years, 4 months ago

APRA warned Albanese government about 'heightened' housing risks as interest rates rise

ABC  

The banking regulator warned the incoming Albanese government that it would face "heightened" risks in the housing market as interest rates rise. Key points: The banking, insurance and superannuation regulator prepared an incoming-government brief in May The document warned the Albanese government that housing market risks were "heightened" due to rising rates APRA said banks were well placed to weather …

RBA says borrowers can handle interest rate rises, but experts warn mortgage repayments will surge
2 years, 5 months ago

RBA says borrowers can handle interest rate rises, but experts warn mortgage repayments will surge

ABC  

The Reserve Bank's deputy governor is confident that most mortgage borrowers can cope with rapidly rising interest rates, even as analysts suggest many households could soon face $1,000 a month or more in extra repayments. Key points: Almost a third of borrowers could face a 40 per cent increase in monthly mortgage repayments next year Monthly repayments could increase by …

Can we avoid a recession? What we can learn from the Kiwis
2 years, 5 months ago

Can we avoid a recession? What we can learn from the Kiwis

ABC  

A little over three hours' flying time from Australia's east coast could lie a window into our future. ANZ's Sharon Zollner says there may be a "freak-out" among New Zealand households over rising interest rates and falling property prices. "They want to be in a position such that when there's another shock, they are going to adjust interest rates in …

Sky-high mortgages, 7.1 per cent inflation, and a risk of recession: How economists see the year ahead
2 years, 5 months ago

Sky-high mortgages, 7.1 per cent inflation, and a risk of recession: How economists see the year ahead

ABC  

Homeowners will face mortgage rates near 5.5 per cent in a little over a year, according to a survey of 22 leading Australian economists. The panel believes the Reserve Bank will push its cash rate to its highest point since the 2010-2012 resources boom in an effort to contain inflation, which it expects to jump from its present 5.1 per …

As fixed mortgages end and rates rise, many risk losing their homes
2 years, 6 months ago

As fixed mortgages end and rates rise, many risk losing their homes

ABC  

Sarah Ibrahim is worried about what will happen when her fixed rate ends in January. As interest rates rise, almost 300,000 people who took large and risky home loans during the pandemic could fall into severe financial hardship or even default. "We're already seeing banks ramping up their action to enforce mortgage debts and repossess homes already against the background …

Rising interest rate may dent homebuyers’ affordability: Report
2 years, 6 months ago

Rising interest rate may dent homebuyers’ affordability: Report

Live Mint  

The upturn in the interest rate cycle could be a significant headwind for the real estate sector that has been on a strong recovery path after surviving the worst of the pandemic, Knight Frank India said in a report released today. While it is a critical tool in the fight against burgeoning inflation, this turn in the interest rate cycle …

Banks crack down on high debt-to-income home loans as regulator APRA comes knocking
2 years, 6 months ago

Banks crack down on high debt-to-income home loans as regulator APRA comes knocking

ABC  

Two of Australia's biggest banks have moved to curb high-risk home lending, as the regulator revealed it has been warning some institutions to cut back on risky loans. Key points: APRA's boss revealed the regulator has contacted some banks about a surge in risky high debt-to-income loans ANZ and NAB have recently imposed new, lower caps on such loans The …

Home sales tumble again as mortgage rates surge
2 years, 7 months ago

Home sales tumble again as mortgage rates surge

Associated Press  

Sales of previously occupied U.S. homes slowed for the third consecutive month in April as mortgage rates surged, driving up borrowing costs for would-be buyers as home prices soared to new highs. Existing home sales fell 2.4% last month from March to a seasonally adjusted annual rate of 5.61 million, the National Association of Realtors said Thursday. Fierce competition for …

Government minister admits first home buyer policy would push up house prices, PM says other policies would balance it out
2 years, 7 months ago

Government minister admits first home buyer policy would push up house prices, PM says other policies would balance it out

ABC  

Minister for Superannuation Jane Hume has conceded the Coalition's recently announced first home buyer policy would increase house prices "temporarily". Key points: Some economists say it would only push up house prices and would not address affordability Superannuation Minister Jane Hume says a number of other factors influence house prices Scott Morrison says other government policies will minimise any potential …

Mortgage interest rates rise again, but will this impact house prices?
2 years, 10 months ago

Mortgage interest rates rise again, but will this impact house prices?

Dutch News  

Mortgage interest rates in the Netherlands are rising, and have gone up 0.45 of a percentage point to 1.85% for a 20-year fixed rate mortgage, the Financieele Dagblad reported on Tuesday. The sharp increase takes mortgage rates to their highest level since August 2019, and it is, according to experts, unclear when the increase will slow down again. The low …

Mortgage interest rates rise again, but will this impact house prices?
2 years, 10 months ago

Mortgage interest rates rise again, but will this impact house prices?

Dutch News  

Mortgage interest rates in the Netherlands are rising, and have gone up 0.45 of a percentage point to 1.85% for a 20-year fixed rate mortgage, the Financieele Dagblad reported on Tuesday. The sharp increase takes mortgage rates to their highest level since August 2019, and it is, according to experts, unclear when the increase will slow down again. The low …

Inflation is not 'out of control', but interest rates may have to rise this year
2 years, 10 months ago

Inflation is not 'out of control', but interest rates may have to rise this year

ABC  

Australian consumers saw prices rise by 3.5 per cent last year. Inflation running at 3.5 per cent Most of the price increases facing consumers in Australia last year were driven by pandemic-related economic disruptions. Gareth Aird, a Commonwealth Bank economist, says Australia's labour market will keep tightening this year, meaning even more people will find jobs and the unemployment rate …

House prices depend on interest rates: as one goes up, the other will fall
3 years ago

House prices depend on interest rates: as one goes up, the other will fall

ABC  

It's very likely house prices, at least in Australia's two biggest cities, will fall at some point over the next couple of years. While it's mainly longer-term fixed rates rising at the moment, they're going up because financial markets expect the Reserve Bank to lift interest rates long before its previous aim of 2024. That why Gareth Aird noted that, …

Australian house prices 'rolling over' as rising interest rates, affordability bite, warns ANZ
3 years, 1 month ago

Australian house prices 'rolling over' as rising interest rates, affordability bite, warns ANZ

ABC  

ANZ bank has tipped house price falls the year after next as the pandemic boom in Australian housing comes to an end. Key points: ANZ tips housing prices will rise 21 per cent this year, 6 per cent next and fall 4 per cent in 2023 The bank says more homes on the market for sale, reduced affordability and rising …

Reserve Bank of Australia assistant governor Luci Ellis blames government spending for house prices
3 years, 1 month ago

Reserve Bank of Australia assistant governor Luci Ellis blames government spending for house prices

Daily Mail  

Taxpayer-funded policies have been blamed for the surge in Australian property prices to well beyond what an average income earner can afford. Luci Ellis, an assistant governor on economic policy with the Reserve Bank of Australia, suggested pandemic stimulus measures were responsible, with house values in some coastal areas surging by more than 30 per cent in just a year. …

APRA tightens home loan rules on the same day New Zealand's Reserve Bank lifts interest rates
3 years, 2 months ago

APRA tightens home loan rules on the same day New Zealand's Reserve Bank lifts interest rates

ABC  

The banking regulator has announced tougher serviceability tests for home loans, which will make it harder for some borrowers to get a mortgage, on the same day the Reserve Bank of New Zealand starts lifting its benchmark interest rate. Key points: Banks will have to apply a slightly tougher test on a borrower's ability to afford mortgage repayments APRA is …

Why Australian house prices could plunge by 8 per cent in 2022
3 years, 8 months ago

Why Australian house prices could plunge by 8 per cent in 2022

Daily Mail  

Big city house prices are tipped to fall by as much as 8 per cent in 2022 as lending rules tighten and Australia's post-Covid economic recovery loses momentum. Big city house prices could plunge by 8 per cent in 2022 as lending rules were tightened and Australia's economic recovery lost momentum. Pictured are houses at Kellyville in Sydney Key factors …

House prices rising at fastest pace in 32 years as listings can't keep up with demand: CoreLogic
3 years, 8 months ago

House prices rising at fastest pace in 32 years as listings can't keep up with demand: CoreLogic

ABC  

Australian house prices are rising at the fastest pace in 32 years, as the Sydney and Melbourne property markets stage a full recovery from the short-lived COVID downturn. Key points: Home values in Sydney, Melbourne, Hobart, Canberra and Brisbane are at record highs Capital city price rises outpaced regional markets for the first time in a year Some economists expect …

House price, mortgage debt surge no cause for 'immediate alarm', says APRA
3 years, 8 months ago

House price, mortgage debt surge no cause for 'immediate alarm', says APRA

ABC  

The financial system regulator has reminded Australians that it does not have a mandate to target house prices, or housing affordability. Key points: The bank regulator said it does not target housing prices with its home lending policies APRA's chair Wayne Byres said the current rise in home prices and lending is not alarming, but the regulator is not complacent …

Fears of a debt disaster as property market runs hot and changes to safe lending laws loom
3 years, 9 months ago

Fears of a debt disaster as property market runs hot and changes to safe lending laws loom

ABC  

Jacob had big dreams before the global financial crisis. The Greens said the bill was "designed to let the banks get on with writing loans as big as they possibly can, whether it's good for people or not". "The banks have reduced what they were assessing loans at — in 2018 it was closer to 8 per cent, but now …

The ticking time bomb threatening 900,000 Australian borrowers
3 years, 9 months ago

The ticking time bomb threatening 900,000 Australian borrowers

Daily Mail  

A mortgage time bomb is threatening almost 900,000 Australian home borrowers who are behind on their repayments - and it could get worse from next month. Despite interest rates being at a record low of 0.1 per cent, 31 per cent of Australians with a home loan are in arrears, a survey by financial comparison website Finder found. Pictured is …

Mortgage interest rates may soon be on the way up as the Aussie dollar falls
3 years, 9 months ago

Mortgage interest rates may soon be on the way up as the Aussie dollar falls

ABC  

For many Australians, the biggest financial decision they will likely ever make is buying a home. The conclusion to all of this is that higher local inflation puts pressure on both the financial markets and the Reserve Bank to raise interest rates. Markets see a world of higher interest rates Financial market participants trade every day in real time, with …

House prices record sharpest increase since 2003, CoreLogic says
3 years, 9 months ago

House prices record sharpest increase since 2003, CoreLogic says

ABC  

Australian house prices have posted their sharpest monthly increase since August 2003, with analysts at CoreLogic saying the market is now entrenched in one of its strongest growth phases on record. Key points: Capital city home prices rose 2 per cent and regional prices rose 2.1 per cent in February Sydney and Hobart led the capital city rises, up 2.5 …

House prices to surge in Australian capital cities, driven by 'aggressive' Government stimulus
4 years ago

House prices to surge in Australian capital cities, driven by 'aggressive' Government stimulus

ABC  

House prices, which are already making a strong recovery from the COVID-19 recession, are likely to inflate further in 2021. Key points: Perth, Sydney and Adelaide are expected to see the biggest price rises next year Australian borrowed $22.7b in October to buy property It was driven by first home owners and the HomeBuilder stimulus program Australia's capital cities may …

The Government wants to make it easier for you to get a mortgage amid the coronavirus recession — but there's a catch
4 years, 3 months ago

The Government wants to make it easier for you to get a mortgage amid the coronavirus recession — but there's a catch

ABC  

It will soon be easier for Australians to take out mortgages and refinance their home loans while small businesses will be able to access more money under Federal Government plans to change credit laws, to mitigate the effects of the COVID-19 pandemic. Key points: The Government says the current credit laws are outdated, particularly during the COVID-19 crisis The Government …

House prices to bounce back in 2021 after modest falls during coronavirus pandemic, CBA predicts
4 years, 3 months ago

House prices to bounce back in 2021 after modest falls during coronavirus pandemic, CBA predicts

ABC  

Australia's biggest home lender says house price falls so far during the pandemic have been surprisingly small, and its internal modelling is predicting a quick rebound everywhere except Melbourne. Key points: CBA is now forecasting a 6 per cent fall in capital city property prices due to COVID-19, down from 10 per cent initially But the bank warns that Melbourne …

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