A majority of mortgage brokers believe APRA’s lifting of the buffer rate on lending will do little to dampen rising house prices.

A
survey by mortgage broker platform Hashching reveals 70% of brokers think house prices will continue to rise despite the increased interest rate buffer.

APRA asked banks to increase the minimum interest
rate buffer for home loan serviceability from 2.5% to 3% from November 1.

About 73% of brokers believe APRA will need to take
further measures in the next six months to slow down borrowing.

Hashching chief executive Arun Maharaj says the
industry is looking for what comes next from the regulator. The survey also found rising property prices hadn’t dissuaded first-home buyers from trying to get into the market with 65% of FHBs interested in a freestanding home rather than a unit.

“There’s probably a big psychological hurdle here
at play – compromising on your ideal after years of saving for a deposit will be tough, many will choose to just save more or will look further afield to get what they want,” Maharaj says.