Where there’s smoke there is usually a little flame.
The Assistant Governor of the Reserve Bank yesterday fanned these flames by complimenting home loan lenders on their increased levels of loan application scrutiny. He particularly lauded Westpac and Commonwealth Bank for increasing the amount of deposit required by home loan applicants.
Making it harder for borrowers will mean a reduction of the number of potential home buyers in the market. The RBA is also on record in saying it will increase official rates, so things are going to get tougher for home mortgage aspirants and current owners. Increasing Mortgage stress is a likely result.
I think as interest rates rise, we may see a flood of properties coming on the market. “For-closure sale”, may be the new catch cry of the real-estate industry moving forward.
Delutter your Home for a more peaceful and profitable likestlye.