Stop being so negative. Always complaining you lot. Ok the interests will be higher, and prices are already high and going higher, but the wages and socal benefits are at all time high and that is great!
/s
Ifrah ja gahan.
Bog standard practice when there’s been such high inflation. Gotta bring it back down by raising interest rates.
I heard some saying that this is a good thing cause apartment prices will come crashing down.
The only people that will benefit from this are people with cash, as they can maybe get apartments for cheaper. First time buyers are shat upon as their loan lending availabilities are drastically reduced.
> Most Maltese home loans are based on a variable interest rate, meaning that a rise in interest rates would make their monthly payments more expensive.
I wonder what increase in monthly payments the average home owner could actually stomach, i.e. what share of discretionary income is spent on home loan repayments.
This country is just becoming so expensive already, and feels like it’s expensive for nothing.
Its a cycle isn’t it, we have had a decade of low interest loans, this sparked the property boom, now we will get the opposite. Brace yourselves!
Rest assured that if loan interest rates rise, the government will intervene to ensure that the property market doesn’t even slow down let alone crash. Intervention can take the form of 1) reduction in stamp duty, 2) increase of the annual benefit granted to first time buyers from the current 1k annually, 3) relaxation of requirements for TCNs to move here thereby increasing demand for property.
To be fair it was about time, the ECB has been increasing rates for 9 months already and at some point the hikes had to trickel down to the retail market. Borrowing will become more expensive and that is a necessary part of tackling the inflation problem.
When you buy a property is important to understand the inherent risks of such a transaction,interests rate risk is one of them, if people did proper planning before buying the property then they should be alright. One piece of advice I can give you, if you have trouble keeping up with debt payments try talking to your lender, it’s on their best interest to find a way for you to continue paying because if you go into default then they likely will lose money so there is a good chance you can negotiate a payment plan that works better for you and saves them the issue of a defaulted loan
higher interest rates mean the bank will lend less for any fixed salary
Unless there is government intervention in one way or another, this should result in a decline in prices.
So they’re going to increase interest rates on my bank deposits? Happy days, right?
Right?
Get rate quotes and lock in now. Prepare for a long haul of penny pinching. Good luck.
11 comments
Stop being so negative. Always complaining you lot. Ok the interests will be higher, and prices are already high and going higher, but the wages and socal benefits are at all time high and that is great!
/s
Ifrah ja gahan.
Bog standard practice when there’s been such high inflation. Gotta bring it back down by raising interest rates.
I heard some saying that this is a good thing cause apartment prices will come crashing down.
The only people that will benefit from this are people with cash, as they can maybe get apartments for cheaper. First time buyers are shat upon as their loan lending availabilities are drastically reduced.
> Most Maltese home loans are based on a variable interest rate, meaning that a rise in interest rates would make their monthly payments more expensive.
I wonder what increase in monthly payments the average home owner could actually stomach, i.e. what share of discretionary income is spent on home loan repayments.
This country is just becoming so expensive already, and feels like it’s expensive for nothing.
Its a cycle isn’t it, we have had a decade of low interest loans, this sparked the property boom, now we will get the opposite. Brace yourselves!
Rest assured that if loan interest rates rise, the government will intervene to ensure that the property market doesn’t even slow down let alone crash. Intervention can take the form of 1) reduction in stamp duty, 2) increase of the annual benefit granted to first time buyers from the current 1k annually, 3) relaxation of requirements for TCNs to move here thereby increasing demand for property.
To be fair it was about time, the ECB has been increasing rates for 9 months already and at some point the hikes had to trickel down to the retail market. Borrowing will become more expensive and that is a necessary part of tackling the inflation problem.
When you buy a property is important to understand the inherent risks of such a transaction,interests rate risk is one of them, if people did proper planning before buying the property then they should be alright. One piece of advice I can give you, if you have trouble keeping up with debt payments try talking to your lender, it’s on their best interest to find a way for you to continue paying because if you go into default then they likely will lose money so there is a good chance you can negotiate a payment plan that works better for you and saves them the issue of a defaulted loan
higher interest rates mean the bank will lend less for any fixed salary
Unless there is government intervention in one way or another, this should result in a decline in prices.
So they’re going to increase interest rates on my bank deposits? Happy days, right?
Right?
Get rate quotes and lock in now. Prepare for a long haul of penny pinching. Good luck.