The by-products of this move: - Lenders large and small have passed these hikes on in full to their variable-rate customers. As a result, the average owneroccupier with a $500,000 home loan and 25 years remaining has seen their repayments rise by more than $760 since May 2022. - Buyers in the property market have a 21-23% decrease in their borrowing capacity. - This decrease has led to a softening in some but not all areas of the market. Derek Farmer | 0402 724 393 derekfarmer@shorefinancial.com.au Finance Update. For example, generally strata properties have come back 10-15% in price but the $6m+ housing market is still performing strongly. - The rate rises are starting to have an impact on inflation and there is a feeling that rates are about to plateau. Feel free to reach out to me directly if you would like further insight on any of the above points. In May the cash rate was at a record low of 0.10%, by October the Reserve Bank of Australia had increased to 2.60%. The RBA has now lifted the cash rate for seven consecutive months, taking it from the historic low of 0.10% in May to 2.85% in November. How do the interest rate rises affect you?
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