Low rates no good to new borrowers

 

PHOTO: CHARLOTTE CURD/STUFF – Interest rates may be low, but if you can’t service a mortgage at 7 per cent, you won’t get one at all.

Mortgage rates are hovering between 4.5 per cent and 5.5 per cent – but if you could not service a loan at 7 per cent, you are out of luck.

CoreLogic has released its latest property market update, for April. It shows a 2 per cent lift in property sales year-on-year, nationwide.

Property value growth was 7.6 per cent for the year, the strongest rate since June 2017.

Head of research Nick Goodall said the growth in prices had been supported by low interest rates.

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