Because things aren’t quite tough enough for first-time home buyers yet:
First home buyers in the firing line
First-home buyers are in the firing line as the Reserve Bank aims its first direct shot at the overvalued housing market.
They can expect to face higher interest rates if they want to borrow more than about 80% of a home’s value, under new moves revealed yesterday. That could push up the interest rate on a floating mortgage from about 5.85% to about 6%.
One banking expert has called the moves a “slap in the face” for first-time buyers. Some property investors and small businesses may also find it harder to get a big loan from a bank.
This “first direct shot” is aimed at exactly the wrong target.