Home buyers with plenty of equity in their properties are still looking to upgrade to a more expensive home despite rising interest rates.
Loan Market Group’s chief operating officer Dean Rushton said the brokerage had received a 38 per cent increase in the level of enquiries from owner occupiers wanting to upgrade their property.
“Around 60 per cent of our customers are considering selling to then upgrade to a bigger property,” Mr Rushton said.
“They mostly have a high level of equity in their existing home – sometimes as much as 75 per cent – and are wishing to upgrade into the next price bracket.”
Despite the RBA’s decision to lift the cash rate for the fifth time in six meetings earlier this month, Mr Rushton said rates were still below traditional average levels and the previous four increases had not had an overly adverse impact on the residential property market.
“The reality is that rates are still reasonable in a historical sense and mortgage holders understand that the RBA only reduced them significantly last year in response to the global financial crisis,” he said.
“The conditions for homebuyers at the moment are still very favourable.”