This Week’s Rates & Finance Update

A.  Standard Variable Rates for sub 80% LVR for Owner Occupiers with Principal & Interest repayments are as follows:

Best:  Bank of Sydney 4.59% or, repayments of $512/mth per $100K borrowed

Best Big 4: CBA 4.92% or, repayments of $532/mth per $100K borrowed


B.  Facts Regarding Interest Rates & Prices

Fact #1  In 9 of the last 10 cycles of rate increases, property prices have gone UP (not down) – and in the remaining cycle, property prices moved sideways.

Fact #2  The 2022 Interest Rate increases reduced borrowing capacity by around 25%.


Conclusion:  So, what looks like gloom (Fact #2) may in fact be a boom (Fact #1)!