r/AusPropertyChat • u/Finance_With_Piyush Property Enthusiast • 3d ago

Buying & Selling Anyone else stressing about another potential RBA rate hike this November(03/11)?

With inflation still sticking around and the big banks dropping hints, it’s looking more and more likely that the Reserve Bank of Australia (RBA) might lift the cash rate again at their November meeting(03/11)

My budget is already stretched to the absolute limit with the current mortgage repayments, and another 0.25% increase is going to hurt.

  • Are you guys fixing your rates now, or just riding it out?
  • For those renting, have your landlords already started hinting at another increase?
  • What’s the consensus here, do we think they’ll actually pull the trigger, or hold off?

Would love to hear how everyone else is preparing for this.

64 Upvotes

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70

u/Thick_Alps3724 3d ago

This is why I brought 200k under my max borrowing power, I feel for the people who didn't but.

43

u/Spirited_Shower_5817 3d ago

I also bought 100k under my max but still feeling the pressure as a FHB. Everything feels new and scary 

0

u/ztrayacnt 1d ago

😂😂 100k under your max? You may as well have just maxed out. You’re farked either way.

-17

u/Candid_Fisherman3731 3d ago

Give it a couple of years and you wont even think of your loan payments. Around 7% is the normal loan rate for Australia

22

u/donttellyourmum 3d ago

Average last 20 years is 5.5% (bank not rba). Not sure why you are saying 7% is " normal".

2

u/Comfortable_Owl_1448 13h ago

20 years is not a very long time horizon and it includes a fairly lengthy and VERY unusual period in history of near zero interest rates.

-8

u/Candid_Fisherman3731 3d ago

Go bsck further the last 20 years have had soft rates

10

u/donttellyourmum 3d ago

Yep, they need to be soft because of property prices, sorry what was your point.

1

u/Puzzleheaded-Act-761 2d ago

If you think rates will ever go that high in the next decade you’re most likely dreaming.

Unless we have hyperinflation or some other catastrophe, debt levels are the highest per capita and in real terms for businesses, persons and governments. The whole system would come crashing down and then they’d cut rates again.

2

u/Spirited_Shower_5817 3d ago

Thanks for the encouragement l, I really hope so

3

u/ResurrectedPanda 3d ago

7% for what? 200k-ish first home mortgages? We're wayyyy past that

7

u/Smooth_Yard_9813 3d ago

mine was 300k under
still doing ok , getting obvious it is becoming survival mode for everyone soon

2

u/Finance_With_Piyush Property Enthusiast 3d ago

You are in a better place undoubtedly!

2

u/Patient_Election7492 3d ago

People gotta have that flashy house otherwise people will think differently of you.

1

u/JayVeeRBC 3d ago

400k under. Could live somewhere nicer. Need somewhere to live.

1

u/WranglesTurtles 1d ago

Someone’s limit should already factor this in. You can’t rely on people not to choose the maximum.

1

u/Thick_Alps3724 1d ago

The bank told me that is the case when I brought. But I'm not really going to go off the banks word so I did my own due diligence.

1

u/WranglesTurtles 1d ago

Yeah, but the point is: not every does.

It’s subjective. Some would even consider a 200k buffer decent but still too tight. Obviously it depends on price of the property.

0

u/Glass-While-5361 1d ago

If unemployment keeps going up, none of us will have jobs. Won’t matter how much money you have if you can’t find work.