101 Australian suburbs average homebuyer will lose after rate rise

A decision to hike interest rates by Reserve Bank governor Michelle Bullock could squeeze homebuyers out of more than 100 Aussie suburbs and towns. Australia’s average homebuyer is facing a 101 suburb wipeout on where they can afford a house if the Reserve Bank hikes interest rates on Tuesday. One rate cut is enough to wipe about $20,000 from the borrowing power of the nation’s typical homebuying household, taking them from being able to afford homes with $877,000 down to homes maxing out around $858,000. Analysis of impacts to borrowing capacities also shows that a second rate hike before the end of the year could leave those borrowers who can afford the nation’s average loan struggling to get a home worth $840,000 and at risk of no longer being able to access 236 areas around the nation that they can afford today. RELATED: Rates nightmare: Experts tip double RBA hike before Christmas One RBA decision can affect home ownership for more than a decade, research finds Top 6 banks panic: Aus’ biggest lenders hike rates before RBA can Industry experts are warning a downshift in borrowing power will also have impacts on the nation’s wider financial health, with prospects the nation’s av...