Home Loans & Mortgages

Home buyers have to cope with the talk of interest rate rises by the RBA being seconded by the banks wanting to raise rates independently to improve their margins on home loans.
So whilst first home buyers may benefit may benefit from house price reductions, homebuyers who bought at the peak of housing prices are likely to feel the stress of higher mortgage repayments.

In that article I have suggested that Interest rates rises concerns for Australian home buyers and homeowners need to be addressed by the RBA and the Government about bank policies in relaxed lending.

There is evidence that any mortgage rate increase will lead to mortgage stress for a lot of homeowners who has overcommitted of mortgage finance, either recently, or by buying at the top of the real estate market.

The RBA may see raising interest rates now as a chance to nail the house price rises and get home values to slide even further.
On the other hand leaving interest rates as is would hurt currency traders trying to second guess the RBA board, and in any case, house prices are already trending down, and are predicted to do so for some time.
My money is on the RBA sticking it to the currency traders and leaving interest rates as is.

Some experts are now saying that the Reserve Bank of Australia [RBA] could raise interest rates as early as October. More of them agree that there maybe four interest rates rises over 2011 to ease inflation caused by our mining boom.

Interest rate rises hit everyone, those with higher pays in the Mining States of Western Australia and Queensland, as well as those consumer based economies in States in the South Eastern States of Australia, who haven’t enjoyed these pay rises businesses who can only dream of the raises in demand for their goods and services, or workers not enjoying the higher employment rates in high income work, as the wealth of the mining boom filters through the economy.