news

Property plans shelved as living costs rise

By webmaster

The increasing cost of living is deterring many people from purchasing property, a national survey has found.

According to a majority (42 per cent) of Loan Market mortgage brokers, daily living cost pressures are the main culprit behind a dramatic slump in home loan approvals.

Loan Market chief operating officer Dean Rushton said 29 per cent of the 202 brokers who responded to the survey thought potential interest rate rises were the major reason, while 15 per cent pointed towards flat property prices and 14 per cent first home buyer affordability.

“The key driver bringing down approvals – which latest Australian Bureau of Statistics (ABS) figures showed were at a 10 year low - appears to be the everyday costs consumers are facing,” Mr Rushton said.

“Many people simply can’t take on home loan credit when they are paying increased petrol and food costs as well as higher charges for utilities such as electricity.”

Mr Rushton said that it was no surprise that potential interest rate lifts from the Reserve Bank of Australia had ranked second as the foremost factor affecting borrowing levels.

“Rate rises, in a time when most consumers are trying to keep rising every day bills at a minimum, are perceived as a major obstacle in obtaining a mortgage,” he said.

Mr Rushton said talk that Australians could be hit with an interest rate hike from the RBA as soon as next month was premature particularly given the weak recent approvals data.

He also said buyer could find some respite in the competitive pricing in the home loan market.

“With weaker home loan demand lenders are having to fight harder than ever for your business,” he said.

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%
Property plans shelved as living costs rise
SPI logo