{"id":38356,"date":"2022-05-02T15:12:26","date_gmt":"2022-05-02T03:12:26","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=38356"},"modified":"2022-05-02T15:12:26","modified_gmt":"2022-05-02T03:12:26","slug":"i-never-thought-theyd-give-me-as-much-money-tara-is-one-of-280000-borrowers-who-could-be-in-trouble-as-rates-rise","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/i-never-thought-theyd-give-me-as-much-money-tara-is-one-of-280000-borrowers-who-could-be-in-trouble-as-rates-rise\/","title":{"rendered":"‘I never thought they’d give me as much money’: Tara is one of 280,000 borrowers who could be in trouble as rates rise"},"content":{"rendered":"

PHOTO: Mortgage stress. FILE<\/strong><\/p>\n

Tara Higginson pulls no punches when asked what will happen if interest rates rise on Tuesday, off the back of soaring inflation.<\/p>\n

“I’m up shit creek”, says the single mother of four who, in the midst of the pandemic,\u00a0took out an interest-only variable loan of $510,000 \u2013 more than six times her income.<\/p>\n

“I don’t have a second income to be able to buffer that fluctuation when it [interest rates] increase,” she says.<\/p>\n

“There would have to be cutbacks.”<\/p>\n

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And rate rises\u00a0are likely to happen at the same time as house prices, nationally,\u00a0fall, according to\u00a0CoreLogic’s research director, Tim Lawless.<\/p>\n

CoreLogic data to the end of April shows that housing values are still rising at the national level, but a\u00a00.6 per cent monthly rate of growth is the lowest reading since October 2020.<\/p>\n

Sydney housing values recorded the third consecutive month-on-month decline, down 0.2 per cent.<\/p>\n

Melbourne values were flat (-0.04 per cent), but the city recorded house price falls for three of the past five months.<\/p>\n

Hobart was also down, by 0.3 per cent,\u00a0but most other state capitals recorded gains above 1 per cent.<\/p>\n

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“Stretched housing affordability, higher fixed-term mortgage rates, a rise in listing numbers across some cities and lower consumer sentiment have been weighing on housing conditions over the past year,” Mr Lawless\u00a0says.<\/p>\n

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\"Graph<\/div>\n<\/div>
CoreLogic house price data to April 30, 2022.(Supplied: CoreLogic<\/span><\/span>)<\/cite><\/strong><\/figcaption><\/figure>\n

‘Really scared to think about’ rate rises<\/h2>\n

To build her dream home in Logan Reserve, in\u00a0the outer suburbs of Brisbane<\/a>, Ms Higginson took out a big home loan and the rest\u00a0was funded by the $25,000 HomeBuilder grant and first home buyer grants of about $15,000. She also pulled $20,000 out of her superannuation.<\/p>\n

She currently pays a variable interest rate of 2.98 per cent, interest-only, and says if rates rise even slightly, she will have to cut back on her youngest daughter’s education and take out a second job.<\/p>\n

\"Vivien<\/a><\/div>\n
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