Borrowing Capacity Index – May 2023
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Loanscape has today released its Borrowing Capacity Index for Q4/2023. It shows that the borrowing capacities of Australian individuals and families continue to decline.
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Borrowing Capacity Index – February 2023
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Loanscape has today released its Borrowing Capacity Index for Q3/2023. It shows that the borrowing capacities of Australian individuals and families continue to decline.
Read MoreMarket Essentials - December 2022
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This month Super funds announced plans to invest $41 billion in properties over the next 10 years in line with the government’s housing accord. According to the Industry Super Australia report though, one of their biggest roadblocks will be insufficient large-scale developments to invest in.
Beta Shares modelling shows mortgage affordability at its lowest since 1990, with an average mortgage repayment to income ratio of 42.8%. The low employment rate is keeping mortgage arrears at bay, but further rate hikes may bring these to a tipping point.
Read MoreMeasuring Borrowing Capacity – A New Index
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Loanscape has created a new index which is a direct measure of the changes to borrowing capacity for prospective home buyers. Known as the Loanscape Borrowing Capacity Index it is an expression of the relative change in borrowing capacity for singles and couples among a basket of lenders.
Read MoreMarket Essentials - November 2022
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The RBA increased the cash rate by a further 25 basis points this month, bringing it up to 2.85%. Current rates are still considered modest by economists in light of the highest inflation on record in three decades.
The new Federal government has delivered its first budget this month with a plan to build 1 million new homes over the next 5-years. The plan provides for 30,000 social and affordable rental homes.
Read MoreMarket Essentials - October 2022
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Australia’s house prices continue to fall, driven by reduced lending capacity and rising interest rates, which currently linger between 4% and 5%. According to Capital Economics Marcel Thieliant, this trend is set to continue as central bank looks to cool inflation.
This month the Reserve Bank raised interest rates by another 25 basis points to bring the cash rate to 2.6%, contributing to a further drop in confidence amongst buyers.
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Loanscape has today released its Borrowing Capacity Index for Q4/2024. It confirms the forecast trend that borrowing capacities of Australian individuals and families are recovering from their low levels which coincided with the last of the recent increases to borrowing rates initiated by the Reserve Bank of Australia.