A top economist says Australian borrowers should prepare for an end to the period of “cheap credit” and expect mortgage interest rates to remain higher than in the pre-COVID years. The warning is framed around a post-COVID economic environment in which funding costs and broader interest-rate pressures do not quickly return to earlier low levels. The articles stress that while interest rates can move up and down, the overall direction is toward a sustained higher-rate setting rather than a return to consistently inexpensive borrowing. The economist’s message is directed at mortgage holders, highlighting that financing conditions may be structurally different going forward, even if rates change with policy and market developments. Taken together, the reporting emphasizes the durability of higher interest costs and the need for households to plan for mortgage repayments under a new baseline for borrowing costs.
Economist warns Australian mortgage rates will stay higher after cheap credit era ends
A top economist says Australian borrowers should prepare for an end to the period of “cheap credit” and expect mortgage interest rates to remain higher than in the pre-COVID years. The warning is fram...
- A top economist warns that the era of cheap credit for Australian borrowers is ending.
- Mortgage interest rates are expected to remain higher than earlier pre-COVID levels.
- The change is described as lasting beyond the immediate COVID period, reflecting a post-COVID environment.
- The coverage presents the view that borrowers should plan for sustained higher repayments rather than a quick return to low rates.
Australian mortgage-holders are being warned the era of cheap credit is gone for good - with interest rates set to remain permanently higher in a post-Covid world.
2 months agoAustralian mortgage-holders are being warned the era of cheap credit is gone for good - with interest rates set to remain permanently higher in a post-Covid world.
2 months ago
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