Invest
Don’t relax yet, mortgage rates likely to move up
The Reserve Bank of Australia has announced its official cash rate for July, but industry members are reminding borrowers that banks can move independently.

Don’t relax yet, mortgage rates likely to move up
The Reserve Bank of Australia has announced its official cash rate for July, but industry members are reminding borrowers that banks can move independently.

While the RBA decided to leave the cash rate on hold at 1.5 per cent for the 23rd consecutive month, mortgage-holders would be best served by preparing for future rate hikes, Tim Lawless, head of research at real estate analysis group CoreLogic, has said.
“Economic conditions remain reasonably stable, housing market growth continues to slow, household debt is at record highs, and inflation remains around the lower end of the RBA target range. With this scenario as a backdrop, the hold decision from the RBA was widely anticipated,” Mr Lawless said.
“However, focus is now moving to mortgage rates, where we are increasingly seeing upwards pressure from overseas funding costs. Already, smaller banks and non-banks, who are generally more exposed to wholesale debt costs, are pushing interest rates higher for select mortgage products.”
Larger banks are more resilient to higher funding costs thanks to domestic deposits, but also face rising pressures.
“It is likely margin pressures are becoming evident across the big end of town as well,” he said.
Nevertheless, Mr Lawless said these “early signs” of upwards pressure haven’t resulted in any significant change to average variable rates at the big banks.
"Borrowers, particularly owner-occupiers with principal and interest loans, should continue to expect a low mortgage rate over the medium term,” he said.
According to RateCity spokeswoman Sally Tindall, the number of mortgagors facing higher repayments in July is as high as 362,800, noting that 13 lenders have hiked rates recently.
“Hundreds of thousands of home loan customers [are] about to be hit with higher repayments this month, even though the RBA has left the cash rate on hold in July,” she said.
“If you take an average rate hike of 25 basis points, for a $300,000 home loan you’re looking at paying an extra $540 per year – that’s not small change.
“For the people who bought at the peak of the market and are overstretched already, they are not going to be able to find those dollars easily.”

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more