FOUR REASONS NOW IS A GOOD TIME FOR FIRST-HOME BUYERS ( EVEN WITH AN INCREASED CASH RATE )
For the eighth month in a row we saw the Reserve Bank of Australia ( RBA ) increase the official cash rate . In its final meeting for 2022 , the central bank increased the rate from 2.85 per cent to 3.1 per cent in its ongoing bid to cool rising inflation .
This is three per cent higher than the start of the year , which marks the top end of where borrowers were stress tested for new home loans , meaning many homeowners will be feeling the pinch of higher repayments as they service their loans . The small reprieve being the RBA does not meet in January , so there will not be another increase for at least two months .
There has been a lot of talk around what the rising cash rate and ensuing mortgage interest rates means for people who already have a loan , but what about those who are wanting to enter the property market ? Rising interest rates means a lower borrowing capacity ( the amount a lender is willing to lend you ) and the turbulent property market may seem a deterrent for some . However , there are a number of reasons why this could actually be a good opportunity for first-home buyers to enter the property market .
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