Costs for many homebuyers have jumped by up to 150 basis points over the past 12 months and are expected to continue rising even if low inflation means an official rate hike from the Reserve Bank of Australia is unlikely in the near term.
Owner-occupier borrowers are paying between 30 and 40 basis points more and rates on interest-only and investor loans are up by 70 to 150 basis points, according to consultancy Digital Finance Analytics (DFA).
There has been a small decrease in average principal and interest, owner-occupier loans because of regulatory pressure on lenders to encourage borrowers to reduce debt.
If anything, this week’s inflation data gives households a breathing space in which to pay off debt before rates do r…
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