Home News RBA tells buyers to be ‘realistic’

RBA tells buyers to be ‘realistic’

Font size :
John Hilton

The Reserve Bank of Australia has advised home buyers to be cautious about the rise of property prices and investment in Sydney.

In NSW, property investment approvals are now responsible for about 40% of the total value of loan approvals, the RBA said in its Financial Stability Review.

“It is important that those purchasing property maintain realistic expectations of future dwelling price growth,” the RBA said.

 “Long-run future growth in dwelling prices might be expected to be more in line with income growth.”

The RBA also recognised the growth of self-managed superannuation funds which they claim could be a “new source of demand that could potentially exacerbate property price cycles”.

But they acknowledged that even though overall SMSF lending has grown in recent years, it still remains only a relatively small proportion of bank lending. 

They said that if the property market overheats and the economy underperforms, it would be more difficult to make further cuts to interest rates.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks

The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

Broking industry wants to reform commission structures Broking industry wants to reform commission structures It argues that scrapping commissions altogether would push up the interest rates paid by consumers ... Read more

More mortgage news and articles

Sponsored Links

Friday, Jul 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords