Sunday, September 6, 2009

“Many people have bought recently thanks to low rates and the first-home owner grant and some will

The risk of unemployment combined with negative equity could catch out young borrowers.

The risk of unemployment combined with negative equity could catch out young borrowers. The predicted rate hikes would take the cash interest rate to 3.75 percent, a move that would add $119 to the monthly repayment on a $300,000 mortgage.Meanwhile, the Federal Government boost to the first-home owner grant will halve on October 1 and disappear at the end of the year, potentially undermining buoyant prices at the lower end of the housing market. “Many people have bought recently thanks to low rates and the first-home owner grant and some will be in trouble when rates rise,” says Martin North, the financial services director with Fujitsu

Posted by chris @ 08:47 PM (490 views)
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