If RBA Cash Rate gets to 3% and above, Mortgagee in possessions across Australia will increase significantly and people will get pushed out of the Property Market.
Then for people trying to get into the property market barriers for entry will also increase: - Add on Banks Minimum Margin 1.8% = 4.8% - Add on APRA 3% Serviceability requirement = 7.8% So you will have to prove to the bank that you can service a Bank Interest Rate of 7.8%, further the level of scrutiny by banks around true income and true expenses has also increase when applying for a loan.
Property price reductions will accelerate over the next 6 to 12 months and peoples buying power will decrease, it's just simple maths.
