Do low interest rates make houses more affordable?

There’s something that intrigues me about the financing behind the house price xxxxxx (rhymes with double) going on in Sydney, Melbourne and other parts of Australia.The commentary in the personal finance media and behaviour from house buyers suggest a widespread belief—that when Glenn Stevens lowers interest rates 25 basis points, buyers can afford to pay more for the 2-bedroom fixer upper that they and 40 other people desperately want to buy.But can they afford more?In Australia most buyers, whether owner/occupier or investor, utilise plenty of debt. And all Australian mortgages are effectively floating rate—even if you fix the first five years...

There’s something that intrigues me about the financing behind the house price xxxxxx (rhymes with double) going on in Sydney, Melbourne and other parts of Australia.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles