fbpx
1300 416 700
Home Loan Types The Team Calculators Learning Our Difference Get in Touch
Purchasing

Was it easier to buy a home back then?

Was it easier to buy a home back then?

Along with death and taxes, there’s another certainty in life these days: as soon as there’s an article about housing affordability and the pressure it places on young families, there’ll be a deluge of comments from baby boomers about how they suffered through decades of high interest rates.

Yet, on the flip side, you’ll hear comments about how buying property used to be much easier, without today’s high house prices to content with.

So, which is true?

Well, between July 1974 and May 1996, standard variable home loan rates were tracking at or around double digit levels in Australia, with a couple of blips when home loans were available at around 9 per cent. That’s a 22 year stretch of home loan rates at high levels, so the amount of national debt was significantly less than it is today. In addition, business loans were 20 to 21 per cent and credit card interest rates were 23 to 24 per cent.

Looking at those rates, even with higher house prices, makes today’s market not seem so bad.

Was it easier to buy a home back then?

The current standard variable rate with the major banks is around 5.25 per cent, and the “mortgage managers” basic variable rate as reported by the Reserve Bank of Australia is 4.15 per cent. Shore Financial’s team of brokers can help to find the best deal for you, with some of our clients getting variable rates from 3.6 per cent.

Learning

Related Articles

Purchasing
Refinancing

Shore Private – Our New White Label Product

31 Jul 2021
Guides
Purchasing

NSW Property Tax Proposal – All you Need to Know

19 Jul 2021
Purchasing

Everything You Need To Know About Buying A Strata Property

16 Mar 2021
Guides
Purchasing

House Auctions 101: How to Prepare Ahead & Increase Your Chance of ...

16 Feb 2021
First Home Buyers
Purchasing

When will be the Best Time to Buy this Year?

20 Jan 2021
Market Trends
Purchasing

Australia Sees a Return of Buyers

19 Nov 2020
Guides
Purchasing
Refinancing

How Is A Property Valuation Done?

19 Nov 2020
Guides
Purchasing

What Property Can I Afford?

19 Nov 2020
News
Purchasing

Budget 2020: What it Could mean for Sydney’s Property Market

16 Oct 2020
Purchasing
Refinancing

How to Purchase a Second Property Without a Saved Deposit

16 Oct 2020
Purchasing
Refinancing

Should You Prepare for a Property Market Resurgence?

15 Sep 2020
Guides
Purchasing

Choosing a Loan Structure: Fixed vs Variable

17 Aug 2020
Purchasing

Spring Forecast: JobKeeper, Unemployment, Interest Rates & More

17 Aug 2020
Market Trends
Purchasing

Rental prices are falling: 5 reasons why it’s still better ...

19 Jun 2020
Purchasing

6 Reasons Why You Should Buy Instead of Rent

21 Feb 2020