Interest rates to rise ‘sooner’ rather than ‘later’ says top banks

FHBA Weekend Preview: 23 – 24 September 2017

In today’s edition of FHBA Weekend Preview we take a look at why interest rates could soon be heading north; take a closer look at the Logan region of Queensland; review the top first home buyer stories this week; preview this weekends auction activity and explore our five favourite ‘new’ properties for first home buyers this weekend. 

WITH the Australian economy performing better than forecast and the Reserve Bank of Australia (RBA) sounding more optimistic about the outlook, Australia’s big banks now believe interest rates will rise sooner than they previously predicted.

Currently, the official RBA cash rate is sitting at a record low of 1.50% which has led to low home loan interest rates. At the moment a first home buyer with a 20% deposit can expect to get a home loan with most features attached to it at under 4.00% with some Australian banks and lenders. However, if the major banks are right, soon property buyers could be paying more in interest. Here are the revised comments / forecasts from Australia’s big 4 banks:

  1. ANZ – ANZ were anticipating rates to stay on hold until 2019 but are now predicting two 0.25% increases in 2018, with the first 0.25% most likely to occur in May.
  2. CBA CBA have been expecting rates to stay on hold until 2019 but one of their senior economists, Michael Workman says CBA now expects a single RBA rate increase in late 2018 with “the risk of an earlier move building”.
  3. NAB – NAB have also been predicting that interest rates would stay on hold until 2019 but have just updated their forecasts to two 0.25% increases in 2018, one in August followed by a second one in November.
  4. Westpac – At this stage Westpac is keeping to its forecasts of rates staying on hold until at least 2019.

All of the major banks believe their will be no more rate cuts from the RBA

So what does this mean?

Well firstly, they are just predictions. A lot of things can change between now and 2018 (& 2019).

Secondly, with the RBA cash rate currently at a record low, history say’s it can’t stay that low forever. Even the RBA has said this themselves.

As a first home buyer, you need to manage your budget and time of entry into the market. You should work with a Mortgage Broker to factor in potential rate rises so that you are not caught out by any nasty surprise situations such as your cashflow not being enough to cover mortgage repayments. You can also work with a Mortgage Broker to compare variable interest rate home loans with fixed interest rate home loans (or even a combination of the two). A fixed rate home loan may provide you with some certainty around loan repayments for a period of time.

Need help organising finance for your first home purchase? Try FHBA Mortgages today – Australia’s leading first home buyer lending specialists.

Meanwhile, despite the talk of potential rate rises, the Spring market continues to be very busy with listings, open homes and auctions. This weekend, CoreLogic Australia has forecast well over 2,500 auctions across the country (up on both last week and also on the same weekend last year), mostly in these capital city markets:

Adelaide 120
Brisbane 108
Canberra 82
Melbourne 1,156
Perth 39
Sydney 983

Want to know more about this weekend’s auction activity? See this weeks CoreLogic blog.

Good luck to all first home buyers in action this weekend!

First home buyer homes of the week: edition 72

These are our favourite 5 new properties for first home buyers looking for First Home Owner Grant eligible homes, this weekend. These properties are also eligible for the exclusive FHBA 50 Rebate! Which one is your favourite?

New South Wales new home of the week

Queensland new home of the week

South Australia new home of the week

Victoria new home of the week

Western Australia new home of the week

These two house & land packages on the outskirts of Melbourne are priced under $500,000 and are currently eligible for the First Home Owners Grant ($10,000); the FHBA 50 Rebate ($8,660) and full stamp duty exemption (worth $18,850 +). The grand total of first home buyer incentives on these two homes is over $37,500!!*

Open homes and auction weather


Current hotspot in focus: Logan (Queensland)

Every fortnight we take a closer look at an area in Australia that is popular with first home buyers. Our current hotspot in focus with first home buyers is Logan in Queensland:

  • Logan is located in the south east corner of Queensland, approximately halfway between Brisbane and the Gold Coast
  • The population of Logan is rising fast due to the location, the local lifestyle and the average cost of housing in the area
  • Australia’s third largest city (Brisbane), Ipswich and the sunny Gold Coast are all within 60 mins driving distance giving you plenty of choices for employment locations and weekend drives
  • Shops, hospitals, schools and plenty of transport options also add to the appeal of Logan
  • The climate isn’t too shabby either….learn more about Logan including house prices

Ahh – now this is what Australian living is all about

House hunt with confidence

Planning on going house hunting soon but don’t know whether a bank will lend you enough funds to buy your first home yet?

You should get a no obligation home loan pre-approval! A loan pre-approval provides you written guidance of how much a particular bank is willing to lend to you. A loan pre-approval comes with no obligations to proceed, leaving you in control and importantly, attending open homes knowing what your borrowing capacity and budget is.

Get a no cost loan pre-approval speak with an FHBA Broker from FHBA Mortgages today

Search FHOG eligible homes from your couch

Are you in the market for a newly built property? This could be a house & land package, a townhouse or a newly constructed apartment. Search our new look ‘new homes’ portal this weekend to see hundreds of Grant (& FHBA 50 Rebate) eligible properties suitable for first home buyers!

Search New Homes

Search hundreds of first home buyer homes here

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Written By,

First Home Buyers Australia

*Eligibility conditions apply – ask an FHBA Coach for details 

Wondering whether you have saved enough to form a deposit? Try the revamped FHBA Eligibility Estimator for free!

First Home Buyers Australia
First Home Buyers Australia

Australia’s leading organisation specialising in assisting first home buyers achieve the great Australian dream of property ownership.