Increase Your Chance at Car Loan Approval

Loans For Cars :: News

Share this news item!

Aussie Homeowners Show Resilience Amidst Rising Interest Rates

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Amid the global economic shifts, Australian homeowners, notably exposed to fluctuating interest rates, have defied pessimistic predictions and demonstrated resilience.

Unlike many countries, most Australian mortgages are subject to variable interest rates, which heightens sensitivity to cash rate changes.

Christopher Kent, Assistant Governor at the Reserve Bank of Australia (RBA), addressed this issue at the Melville Lecture, highlighting that the sharp increase in interest rates hasn't led to significant financial distress among borrowers. “Mortgage arrears rates have risen, but they remain low and at similar levels in Australia and the United States,” Kent noted.

This financial resilience, according to Kent, stems from Australians making strategic financial adjustments. While pressure on household budgets is evident, many are choosing to cut spending in less critical areas rather than fall behind on mortgage payments. This tactic has helped many Australians remain on top of their financial obligations, as exemplified by stable arrears rates.

The pandemic period saw elevated savings as consumption dropped and government subsidies provided an unwarranted but welcome financial cushion. "Some borrowers may tap into existing savings," said Kent, noting that withdrawals from offset and redraw accounts increased alongside rate hikes. However, overall contributions to these savings avenues have continued as when compared to pre-pandemic levels.

Interestingly, despite a 45% hike in minimum mortgage payment requirements since 2020, the proportion of mortgage holders maintaining their payment schedules has remained consistent. This suggests a financial buffer exists among borrowers that wasn't adequately accounted for in earlier predictions.

Kent also underscored the unique nature of Australia's monetary policy environment. Despite heightened focus on its effects on variable rate borrowers, he pointed out: “There is no evidence that monetary policy overall is more potent in Australia than in other advanced economies.”

In addition to savings accumulations, low unemployment and regulatory frameworks such as the Australian Prudential Regulation Authority’s minimum serviceability criteria have provided additional cushioning. Kent cited that only a fraction of new home buyers borrowed up to their reported maximum capacities in 2022, highlighting a deliberate undershooting in borrowing.

Observing ongoing challenges, those who purchased homes post-pandemic face stiffer obstacles, influenced by recent economic conditions. “This share is likely to have increased since then due to increases in interest rates and housing prices and declines in real incomes,” Kent remarked.

The RBA's observations align with reports from major banks. Westpac shared that most mortgage holders are significantly ahead on their payments, with a majority who required hardship support needing it only temporarily. Meanwhile, ANZ Chief Executive Shayne Elliott reflected positively on borrowers' resilience despite continuously high rate conditions over the past year.

These insights originally cited in NewsWire support a narrative of Australian residents adapting smartly to ongoing monetary pressures, leveraging pandemic savings and a robust employment market to withstand the financial squeeze.

Published:Wednesday, 20th Nov 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

New Low-Interest Loans to Accelerate Electric Vehicle Adoption

21 Feb 2026: Paige Estritori

In a significant move to promote the adoption of electric vehicles (EVs) among Australian consumers, the federal government has announced a new loan scheme designed to make EVs more accessible and affordable. This initiative aims to reduce the financial barriers associated with purchasing electric cars, thereby encouraging a shift towards more sustainable transportation options. - read more

Decline in Australia's Used Car Market: Sales and Listings Down

21 Feb 2026: Paige Estritori

The Australian Automotive Dealer Association (AADA), in collaboration with AutoGrab, has released the November 2025 Automotive Insights Report (AIR), revealing a significant downturn in the used car market as the year concludes. - read more

New Partnership Aims to Reduce Electric Vehicle Costs for Australians

13 Feb 2026: Paige Estritori

In a significant move towards promoting sustainable transportation, the Clean Energy Finance Corporation (CEFC) has committed up to $60 million in partnership with Hyundai Capital Australia (HCAU) to make electric vehicles (EVs) more affordable for Australian consumers. - read more

Australians Embrace Hybrid Vehicles Amid Rising Environmental Awareness

13 Feb 2026: Paige Estritori

The Australian automotive market is witnessing a significant shift as consumers increasingly opt for hybrid vehicles, balancing practicality with environmental consciousness. Recent data from the Australian Automotive Dealer Association (AADA) and AutoGrab reveals that used hybrid car sales have more than doubled over the past two years, escalating from 6,868 units in October 2023 to 14,784 in October 2025. - read more

Australian Used Car Market Ends 2025 on a Softer Note

05 Feb 2026: Paige Estritori

The Australian Automotive Dealer Association (AADA), in collaboration with AutoGrab, has released the December 2025 Automotive Insights Report (AIR), revealing a significant downturn in the used car market as the year concluded. - read more

Plug-In Hybrid Vehicles Gain Momentum as Petrol Car Sales Decline in Australia

05 Feb 2026: Paige Estritori

The Australian automotive market is witnessing a significant shift in consumer preferences, with plug-in hybrid vehicles (PHEVs) experiencing a remarkable surge in sales, while traditional petrol vehicle sales continue to decline. - read more

Macquarie Bank Transfers $1.5 Billion Car Loan Portfolio to Allied Credit

28 Jan 2026: Paige Estritori

In a significant move within the Australian financial sector, Macquarie Bank has agreed to sell a $1.5 billion portfolio of car loans to Allied Credit, a leading independent financier in Australia. This portfolio encompasses over 50,000 car loans and is slated for transfer by the fourth quarter of 2025. - read more

Click for more Finance News

Car Loans Articles

Loans for Cars: Establishing How Much You Can Afford to Borrow

When it comes to car loans, one of the first things you need to determine is your budget – how much can you afford to borrow and still comfortably make your monthly car loan repayments? - read more

How Auto Loan Pre-Approval Can Simplify Your Car Buying Journey

Buying a car, especially for the first time, can be an exciting milestone. It's not just about finding a vehicle that suits your needs and lifestyle—it’s also about navigating the financial journey that accompanies it. One crucial part of this process is understanding auto loan pre-approval. - read more

Essential Guide for Australian First-Time Car Buyers

Welcome to your essential guide for Australian first-time car buyers! Whether you're dreaming of your first sleek, new vehicle or a reliable pre-owned car, buying a car for the first time is a big milestone and an exciting experience. - read more

Loans for Cars: Finding the Best Financing Options

The cost of buying a car is a major financial commitment, so it's important to consider all of your options before making a purchase. In this article, we look at some of the pros and cons of the most common car financing options, including leasing, hire purchase and paying cash, and what difference it makes whether you are buying a new or used vehicle. - read more

Five Common Mistakes First-Time Car Buyers Make and How to Avoid Them

Buying your first car is an exciting milestone that can offer a sense of independence and freedom. Whether you're envisioning weekend getaways or a smoother daily commute, the joy of car ownership holds a special thrill. However, alongside this excitement, it is crucial to approach this journey with awareness and preparation to ensure you make a smart financial decision. - read more

10 Common Mistakes Australians Make When Financing Their Car

Car financing has become increasingly popular among Australians for a variety of reasons. For many, it offers the opportunity to own a vehicle without having to pay the entire purchase price upfront. - read more

Leveraging Trade-In Values and Loans for an Australian Car Upgrade

For many Australians, a car is more than just a means of transportation; it's a symbol of freedom, a tool for exploration, and often, a reflection of personal style. With the auto market continually evolving, staying abreast of current trends is key for car buyers looking to upgrade. New models with advanced technology, improved fuel efficiency, and enhanced safety features enter the market each year, making the prospect of upgrading increasingly appealing. - read more

Start Here !

All quotes are provided free and without obligation. We respect your privacy.

Knowledgebase

Closing Costs:
The expenses over and above the price of the property incurred by buyers and sellers when transferring ownership of a property.

This website is owned and operated by Clark Family Pty Ltd (ACN 010 281 008) as Trustee for the Clark Family Trust (ABN 35 957 893 714), 43 Larch Street Tallebudgera QLD 4228. Clark Family Pty Ltd is an Authorised Representative (AR 1298860) of Unique Group Broker Services Pty Ltd (AFSL 509434) for financial product referrals and an Authorised Credit Representative (ACR 401491) of Saccasan Pty Ltd (ACL 386297). Check our licensing details on the ASIC registers: Clark Family Pty Ltd ACR, Clark Family Pty Ltd AR, Saccasan Pty Ltd, Unique Group Broker Services.

IMPORTANT: We do not provide financial product advice or credit assistance. We act solely as an introducer and refer enquiries to licensed third-party intermediaries, insurers, and lenders - with whom you can then deal directly. We may receive a fee or commission from these third parties in consideration for the referral. Before any action is taken to obtain a product or service referred to by this website, advice should be obtained (from either the third party to whom we refer you or from another qualified intermediary) as to the appropriateness of obtaining those products having regard to your objectives, financial situation and needs. Whilst we have our own process for validating the legitimacy of our referral partners, you should always verify the credentials of your financial adviser before proceeding with recommendations that they may present. Visit the ASIC website for further information.

Aussie Homeowners Show Resilience Amidst Rising Interest Rates

Aussie Homeowners Show Resilience Amidst Rising Interest Rates

Share this news item:

START HERE.