In the RBA’s first monetary policy announcement for 2021, it was predicted that the conditions for a rise in the interest rate wouldn’t “be met until 2024 at the earliest”. This statement gave many potential homebuyers added confidence about how much they could afford in terms of mortgage repayments.
However, as pointed out by ANZ’s Head of Australian Economics David Plank in this article by David Taylor, the RBA was merely setting an expectation, not making a pledge. Plank suggests that the cash rate could rise before 2024. And as Taylor explains, any rise in the official interest rate is significant for those with a fixed rate mortgage.
It’s critical for anyone seeking to buy a property to have a keen understanding of how much they can afford to repay over the long-term. The cash rate will inevitably rise given that it’s as close to zero as it’s ever been.
As O’Brien Real Estate (Oakleigh) Director Max Martinucci recently stated, buyers need to “avoid being swept up in the FOMO to the point where they [have] overspent”. Martinucci recommends buyers “consider getting advice from a professional, like a buyer’s advocate” (also referred to as a ‘buyer’s agent’ in some Australian states) due to the experience and knowledge they can provide.
Looking to buy in Melbourne and sick of missing out at auction? Talk to me about how I can help you buy your new home faster, for less.
Ask about our Home Buyer Search and Acquisition Service, where we do all of the legwork on your behalf to MAKE IT EASY to secure your new home.
Give me a call on 03 9686 2288 to discuss how I can help. I offer a free consultation, so why not call today?
By Wendy Chamberlain
Copyright 2021 | All Rights Reserved
WANT TO USE THIS ARTICLE?
You can as long as you include the following (links must be active):
With a passion for all things real estate spanning 20 years, Wendy loves that her role as a Buyers and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.
