Rates push first home buyers further out of market
A third of potential first home buyers are saying their plans for purchase will soon be on the back burner if interest rates continue to rise, according to Mortgage Choice.
In data collected for a Mortgage Choice/Core Data whitepaper, 33.7 per cent of prospective buyers were unlikely to buy a home.
Mortgage Choice chief executive, John Flavell said while unfortunate, rate raises remained a part of life and should be factored in.
“Of course, just because rates are rising and will continue to do so over the coming months and years, first home buyers shouldn’t be deterred,” he said.
“The fact is rate rises are inevitable. In fact, over the past few weeks, the majority of lenders have increased the interest rates across their suite of home loan products.”
Flavell said first home owners needed to pay attention during the processes toward securing a first home, and should asses their overall financial suitability for their intended purchase.
“It is important to check that you are not only able to service a mortgage at current interest rates, but at increased rates,” he said.
“You should also consider your current and future personal circumstances, as this will impact your ability to repay the mortgage.”
AUTHOR
Hope William-Smith
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