Why a time bomb is ticking for a million home borrowers
PHOTO: The Reserve Bank of Australia on Tuesday left the cash rate on hold at a record low of 0.1 per cent but governor Philip Lowe has acknowledged rapidly rising house prices were a concern
The Reserve Bank of Australia left interest rates on hold again at 0.1 per cent
Governor Philip Lowe said the RBA would be monitoring ‘rising house prices’
Canstar survey showed Australians expected interest rates to rise before 2024
More than one million home borrowers have never dealt with interest rate rise
Record-low interest rates are a ticking time bomb for one million home borrowers amid fears mortgage costs will go up well before 2024.
The Reserve Bank of Australia on Tuesday left the cash rate on hold at a record low of 0.1 per cent but governor Philip Lowe has acknowledged rapidly rising house prices were a concern.
‘Given the environment of rising housing prices and low interest rates, the bank will be monitoring trends in housing borrowing carefully and it is important that lending standards are maintained,’ he said.
House prices rise everywhere
Sydney: up 4.3 per cent to $1,112,671
Melbourne: up 2.6 per cent to $859,097
Brisbane: up 2.6 per cent to $607,969
Adelaide: up 1.6 per cent to $518,692
Perth: up 1.8 per cent to $527,833
Hobart: up 3 per cent to $584,974
Darwin: up 1.9 per cent to $519,575
Canberra: up 3.3 per cent to $819,707
Source: CoreLogic Home Value Index for March 2021 on median house prices