The end of a $200 billion emergency Reserve Bank funding scheme put in place to mitigate the impact of the coronavirus crisis is expected to lift fixed mortgage rates from ultra low levels and dampen soaring demand for housing.

The country’s banks have about six weeks to draw down on $90 billion in cheap credit being provided under a central bank program that was designed to soften the blow from the coronavirus pandemic. The end of the program comes amid a broader economy recovery and surging real estate prices that have sparked concerns the property market is overheating.

To read the entire article by Clancy Yeates on The Sydney Morning Herald, please click here.


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