CBA says interest rates will rise around June 2022. In addition, there is a possibility that the RBA cash rate will be 1.25 per cent by next year.
If you are planning to mortgage your property, this is something you should take into consideration especially if the interest rates would indeed rise.
On another note, the house prices are expected to decline by 10 per cent as the higher interest rates weigh on the demand for credit. On the other hand, this is what ‘experts’ said when the pandemic started, instead of which prices rose sharply, so who really knows?
There are so many possibilities that the CBA is looking at because of inflation. They may be right; they may be wrong. Even so, make sure that you can still meet mortgage payments even if the rates rise to 5% or 6%.
You may be interested to know what Noel Whittaker has to say about this possible interest rise. In his recent column, he discussed the different situations that could be affected by this hike, if indeed it will take place.