No housing credit crunch for Australia, says expert

Monday 17 August 2009

Article by Mozo

In news that may be of interest to those looking to compare home loans, the Australian housing market should ride out the global credit crunch, according to one expert.

Writing on, financial journalist David Koch and his wife Libby have claimed that despite International Monetary Fund warnings over the housing market, there are many factors bolstering the Australian industry.

The couple point out that there will inevitably be tightening of bank finance when it comes to home loans, making it harder to borrow.

However, low interest rates coupled with an increasing number of incentives for first-time buyers should help to keep house hunters checking out home loan rates. Indeed, first-time buyers represent 27 per cent of the market.

The pair warn against complacency and advise people to make regular deposits in their accounts, including high interest savings.

Earlier this month the Australian Central Bank voted to keep the interest rate at three per cent for the fourth month running.

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