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Is the RBA done with rising rates?
Many borrowers are coming off their fixed rates, unemployment is rising, and borrowers are not being able to meet new repayment buffers. There’s no doubt that 9 back-to-back rate rises by the Reserve Bank of Australia (RBA) is causing financial strain for us. The RBA, under heavy scrutiny this week, has suggested that more rate rises may be necessary, but economists believe that the RBA has already done enough & we agree, or hope, this is the case.
Rates to increase then drop 50 basis points in 2023
Our January 2023 Black & White Finance update is here to help you stay on top of all things property and finance related - with no grey areas. This month we cover imminent rate rises, how long these high rates will last and when they will drop.
2023 Expectations | 10 Mortgage Tips | Thank You
The 2022 finish line is approaching, and we’d like to leave you with a snack-sized snapshot of what’s to be expected in 2023, along with our top 10 mortgage tips. We thank you your support this year and hope you get a chance to unwind over the break. See you in 2023!
NSW stamp duty changes & rates to peak earlier
Interest rates are predicted to peak lower and pause earlier than originally expected. A cash rate of around 3.6 per cent is where most expectations are now sitting. Some reputable experts believe we will only get to 3.1 per cent, which means we’ve got one more rate rise to go. Hopefully, for home owners and potential buyers, this ends up being true and for NSW first home buyers, there’s more good news. First home buyers can now opt to pay an annual property tax instead of upfront stamp duty, as the NSW Government legislated the First Home Buyer Choice scheme this week.
Reprieve for borrowers not too far away
Yesterday, the Reserve Bank (RBA) increased rates yet again, but at a much slower or normal pace, lifting the official cash rate to 2.6 percent. While this increase indicates that the central bank is still concerned with inflation it does also suggest that a reprieve for borrowers is not far away.
The End Of 50 Basis Point Increases
Was that the last super-sized 50 basis point increase? Some experts believe so and the next few Reserve Bank of Australia (RBA) increases will be by 25 basis points, a normal amount. These rate rises are tough to swallow when life is already expensive. This will mean that we will be able to borrow even less and our property prices will continue to fall. While each bank has passed previous rate increases on in full, they have different rules when it comes to how they apply the increases to their application and approval processes which we should know about.
Is Now The Best Time To Buy?
Interest rates will definitely rise again in the coming months, but there’s more of a case building for this downward cycle in property prices to only last until the middle of next year as rates then go the other way, down. Even though borrowing is already tight and will become more expensive, rising rents and a longer term property focus, just might be providing for some good buying conditions.
On another note, as you may know, we tacked the City2Surf, dedicating our challenge to the Royal Flying Doctor Service. Feel free to help us, help those, who live a little further away, we would love you to support our cause. A huge thanks to those who have contributed to our charitable cause already – we appreciate you.
Inflation and rate increases to end next year?
Exorbitant fuel, grocery, construction costs and now wage pressures, are providing the Reserve Bank of Australia (RBA) with many problems and interest rates will as a result continue to go up. Two big Australian banks say the RBA will raise it’s interest rate significantly higher than previously estimated. It’s likely then that house prices will inevitably continue to come down, but for how long will this cycle last before it reverses again? Will the RBA go too hard in the next 12 months? Will rates come down next year?
First home owner initiatives to combat rate rise impacts
Home loan variable interest rates are rising on Tuesday next week and fixed rates, which are already sky-high went even higher last week with some of the banks. These interest rate rises alone are impacting how much we can borrow. If this global supply shortage problem normalises sooner than later and these Federal and State government first home owner initiatives are effective, will our residential property market price correction, slow down?
Will rising rates hurt as much as some think?
Inflation, higher fixed and variable rates, tighter lending conditions and worsening affordability are all contributing factors causing many experts to believe that residential property prices will fall significantly. But will it all be as bad as what some think? Or will it be an orderly downturn, with somewhat normal conditions, that present short-term opportunities for some including investors and first home buyers?
Will property values crash when rates rise this year?
Is the property market going to crash? When will my interest rate rise? Should I fix the repayments on my home loan? After listening and speaking to Corelogic’s Tim Lawless at the most recent industry conference, and with having our ears close to all things property and finance related, we’re able to answer these common questions for you. Today we also celebrate and thank you, for being in business for 5 years, now with more people, more experience, and more hands-on-deck to help you with your next home loan approval.
What's impacting your loan & property value in 2022
Here’s what to expect from the banks and our residential property market which will impact your loan and property value in 2022. Experts are predicting only gradual property price rises and more interest rate hikes. This is our last snack-sized update for the year before we leave you to enjoy a much-earned break.
Fix Or Not To Fix & Do We Rate-Lock?
Do we now lock in our fixed interest rates to protect ourselves from future increases, or proceed with variable rates? This week, the Reserve Bank of Australia (RBA) did confirm that the official cash rate was holding steady, but they were forced to formally dump its future 0.1 percent three-year bond yield target. Markets reacted instantly with bond yields rising sharply and big banks raising their fixed mortgage interest rates.