Australian homeowners are becoming more concerned about the potential of rising mortgage interest rates and affordability of properties. With further hikes to interest rates likely for 2016, there is no better time than the present to sit back and review existing home loans and take action for the future. Interest rate rises tend to be reflected in lower demand for properties, so home sales may well be impacted soon.
Rising Interest Rates
Interest rates on mortgages have risen throughout 2015 as the major banks have passed asset holding charges on. New capital targets announced in December 2015 mean interest rates are likely to rise again in the near future. Coupled with a sluggish economy, this could mean bad news for homeowners who may already be struggling to meet mortgage commitments.