The fear of future rate increases is stopping home buyers from jumping into the property market.
According to a recent nationwide survey, conducted by Loan Market Group, 64 per cent of Australian’s believe the recent spate of rate hikes have been the biggest deterrent to borrowers.
While the results were largely unsurprising, Loan Market national operations manager Ivan Karamatic said the survey’s respondents did not blame the RBA exclusively.
Mr Karamatic said 22 per cent of respondents cited the banks moving rates independently of the RBA as their major concern.
Respondents also lamented the ending of the boosted federal government First Home Owners Grant, which had been doubled from $7,000 to $14,000 for established homes during the economic downturn.
“Almost one in four of our respondents – 23 per cent – listed the end of the expanded grant scheme as the biggest negative for borrowers,” he said.
“It was obviously a very popular measure with first time buyers and played a key role in stabilising Australian home finance and property markets during the economic crisis.”
Thirteen per cent of respondents blamed reduced competition between the lenders as the biggest negative on borrowers.