According to a survey commissioned by the Australian Financial Brokers Association (FBAA), three-quarters of Australians believe that a one-point increase in interest rates will put pressure on their financial situation.
“Many Australians are clearly at stake, sleepwalking, and false hopes that interest rates will be kept so low,” FBAA Managing Director Peter White said in a statement. I’m holding it. “
In a survey of 1,004 respondents, 57% said they couldn’t keep up with the $ 300 / month increase in rent or mortgages.
“1 percent isn’t a big increase. It happens, and it’s likely to happen soon, as the RBA recently decided not to intervene to stop rising yields on 3-year government bonds.” “My message to Australians is that we must be better prepared.”
According to White, borrowers have taken advantage of historically low mortgage rates and government subsidies to help many Australians buy their first homes.
But he warned that the housing market is swelling and that it could well be fixed.
“We don’t have to overreact, but we need to take an honest, balanced and informed approach. I’d like to tell the borrower, don’t overcommit yourself.” White said. “The borrower and the borrower must have surplus funds to pay the increased amount.”
All four of Australia’s “Big Four” banks have already raised fixed rates prior to speculation that the Reserve Bank of Australia (RBA) will soon raise cash rates.
However, RBA’s Vice-President of Economics, Luci Ellis, said in a parliamentary survey on affordable housing prices and supplies that the vast majority of borrowers wouldn’t feel much impact if interest rates began to rise.
“If interest rates eventually rise, many people don’t need to raise their actual repayments because they paid more than they needed to.” Ellis said..
Prime Minister Scott Morrison said the current inflationary pressures in the United States emphasize that Australia’s economic recovery needs to be secured by “people with a track record of economic management.”
“Otherwise, you’ll see gasoline prices rise, electricity prices rise, and interest rates rise. Otherwise, more than necessary.” Morrison said Reporter. “That’s why economic management is so important as we get out of COVID.”
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