Rising interest rates will have a less dramatic impact on borrowers
Homeowners are well-placed to deal with the current rising interest rate environment, according to valuer Herron Todd White (HTW).
HTW CEO Gary Brinkworth said despite media headlines, borrowers are actually in a very strong financial position coming into the tightening cycle from the RBA.
“The current rate setting should be entirely manageable by most households with 2.5 to 3.0 per cent rate buffers already factored in during the loan approval process,” Mr Brinkworth said.
“Add in the reported uptick in household savings since early 2020, plus those who paid down extra on their loans in recent years, and most families will have adequate financial cushioning to assist in the short term.
“I’m convinced interest rate increases will hit different sectors in different ways, but the general fallout will be less dramatic than has been posited by some commentators.”