, a Sydney buyer will be able to purchase a $900,000 property with a $45,000 deposit, although in practice, to get an $855,000 loan the buyer would likely need to be a couple.
Someone who bought the same property with a 20 per cent deposit would face a slightly smaller, albeit still sizeable jump of $772. “Interest rates are going to go up, so the impact of that’s bigger again … You’re up for a significantly higher repayment and that could stress your budget.”Interest rates could rise as soon as May or June, economists expect, for the first time since 2010. More than a million people have taken out their first mortgage since then and never dealt with a rate hike.
Another group of 25 to 30 per cent are set for a substantial increase in their repayments, and the rest are in between, he said.“Most households will be able to withstand it but there’s a significant group of households with a mortgage who would see quite a significant increase in their payments and that group is more at risk.”
“They just want to get into the market really. There is a little bit of concern, it’s not like it’s extreme – it’s the emotion of wanting to buy a property and get into the market is the dominant thing.”