‘It’s quite distressing’: rate rise brings new pain for would-be homebuyers
Summary
The Reserve Bank of Australia has raised interest rates for the third time in a row, making it harder for people trying to buy their first home. While house prices in Sydney and Melbourne have dropped slightly, prices for the cheapest homes, which first buyers usually want, are still going up.Key Facts
- The Reserve Bank of Australia raised interest rates three times in a row.
- Higher interest rates increase borrowing costs, making it tougher to buy homes.
- Home prices in Sydney and Melbourne fell by about 0.6% in April and more over three months.
- Prices for the cheapest 25% of homes increased by 0.5% in Melbourne and 1.5% in Sydney.
- The government’s deposit guarantee scheme lets first home buyers buy with as little as a 5% deposit.
- Borrowing limits for home buyers have dropped by roughly $17,000 with each rate hike.
- Some first home buyers, like Dani Hunterford and her husband, are struggling to save enough despite working hard.
- Many Australians still expect home prices to rise despite current challenges.
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