Tag: borrowing capacity
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Rate Cuts Spark Property Market Speculation in Australia
Recent rate cuts in the Australian home loan sector have sparked discussions about potential shifts in the property market. Canstar reported that two lenders reduced eight owner-occupier and investor variable rates by an average of 0.34%. Additionally, three lenders decreased 21 fixed rates for both types of borrowers by an average of 0.21%. Home Loan…
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How Lowering Australia’s Home Loan Buffer Impacts Borrowing Power
Recent research suggests that lowering the mortgage serviceability buffer could significantly impact Australian homebuyers. Specifically, reducing the buffer from 3% to 2.5% could potentially allow buyers to borrow 5% more, translating to an additional $18,816.65 in borrowing power for the average wage earner. The Finance Brokers Association of Australia (FBAA) commissioned this study, revealing that…
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Coalition’s Plan to Relax Lending Rules Sparks Debate on Housing Market
The Coalition’s election promise to relax lending rules could have significant implications for the housing market, potentially leading to larger home loans and increased house prices. Currently, banks are required to apply a 3 per cent serviceability buffer when assessing borrowers’ capacity, ensuring they can afford repayments both now and in the future without facing…