The Reserve Bank’s decision to raise rates for the sixth time in seven meetings was helping to put the dream of home ownership out of the reach of many Australians, Aussie’s founder and chief executive Mr John Symond said today.
“The RBA’s decision to raise rates, again, is a slap in the face to every Australian, “ he said. “Australians are already paying more for petrol, food, housing and now the RBA are making it even harder for families by raising interest rates.”
Mr Symond said the latest hike in the official cash rate to 4.5 per cent would hurt homeowners paying off their mortgages, and would prevent many others from buying their first home.
“Because of the shortage of housing, particularly in our capital cities, the cost of property is rising at an alarming rate,” he said.
“This, coupled with rising interest rates will make it difficult for future generations to enjoy home ownership. The Great Australian Dream will become a nightmare for many, who will become lifelong renters.”
“And for those in their own homes, the stress of paying off their mortgages at higher rates will begin to bite. Cracks will start to appear.”
Mr Symond said while the RBA had done a good job trying to steer the economy through the fallout of the Global Financial Crisis, they had been too gung-ho raising rates.
“Governor Glenn Stevens said last year he would raise rates ‘gradually’,” Mr Symond said. “There is nothing ‘gradual’ about six raises in seven months.”
“While our economy is on the mend, the RBA have not given it enough time to mend completely. There is still a lot of uncertainty surrounding Europe and the US, and we would be naïve to think we’re completely out of the woods here in Australia.”
As one of the country’s largest non-bank providers of financial services, Aussie has a loan book of more than $36 billion. With the acquisition of Wizard, there are now over 150 retail shopfronts and more than 850 brokers across the country ready to help customers get a better deal on their finances.
An Aussie broker will offer guidance, assess eligibility, lodge the application and then support the first home buyer borrower through the home loan process. Aussie brokers are available 24 hours a day, seven days a week, in all capital cities and regional centres at the request of customers who call Aussie on 13 13 33.