Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

One in four FHBs could afford 4% increase in interest rates

Notify me of new replies via email
Australian Broker | 20 Nov 2015, 06:29 AM Agree 0
One in four first home owners say their interest rate would have to more than double before they felt financial strain, according to new research
  • Maria Rigoni | 20 Nov 2015, 12:42 PM Agree 0
    Sounds like research is being done to see how much more lifting of rates outside the RBA cash rate changes consumers are prepared to tolerate.

    Every extra dollar due to an in interest rate rise paid to a lender takes away that dollar from contributing to a sale somewhere in the economy.

    So what question was actually asked of the consumer? Was it "what % can you afford on top of your existing rate you are paying?" or was it "your loan amount is $XXX your repayments will increase to $XXX with a 4% interest increase. How do you feel about increasing the bank's profit by that amount?"
Post a reply