{"id":392145,"date":"2026-03-18T22:25:11","date_gmt":"2026-03-18T22:25:11","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/392145\/"},"modified":"2026-03-18T22:25:11","modified_gmt":"2026-03-18T22:25:11","slug":"borrowing-limits-expected-to-tighten-after-latest-cash-rate-rise","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/392145\/","title":{"rendered":"Borrowing limits expected to tighten after latest cash rate rise"},"content":{"rendered":"

The estimate assumes an owner-occupier application with no other debts, no dependants and minimum expenses. Canstar noted that borrowing capacity figures are indicative and can differ between lenders.<\/p>\n

If the cash rate rises again in May, as major bank economists are forecasting<\/a>, Canstar estimates the same borrower\u2019s borrowing capacity could be lower by about $37,000 in total.<\/p>\n


\n\t <\/p>\n
\n\t\t\tEstimated decrease in borrowing capacity as a result of RBA hikes
\n\t\t<\/tr>\n

<\/p>\n
\n\t\t\tBorrower
\n\t\t\tHike in March
\n\t\t\tCumulative impact across March + Feb
\n\t\t\tCumulative impact: March + Feb + May
\n\t\t<\/tr>\n

<\/p>\n <\/p>\nIndividual (avg. wage)<\/td>\n

<\/p>\n-$12,000<\/td>\n

<\/p>\n-$25,000<\/td>\n

<\/p>\n-$37,000<\/td>\n


\n\t\t<\/tr>\n

<\/p>\n <\/p>\nCouple (2 x avg. wage)<\/td>\n

<\/p>\n-$24,000<\/td>\n

<\/p>\n-$49,000<\/td>\n

<\/p>\n-$73,000<\/td>\n


\n\t\t<\/tr>\n

<\/p>\n <\/p>\nSource: Canstar.com.au. Based on an owner-occupier taking out a 30-year loan at the average RBA rate.<\/td>\n


\n\t\t<\/tr>\n


\n\t <\/p>\n

Commonwealth Bank<\/a>, Westpac<\/a>, NAB<\/a> and ANZ<\/a> have each signalled they still anticipate another 0.25 percentage point increase in May, which would take the cash rate to 4.35%, reversing the effect of the three rate cuts delivered in 2025.<\/p>\n

\"Sally\u201cIf inflation continues to soar and the RBA is forced to hike again as soon as May, as the banks are forecasting, buyers could be staring down an almost $40,000 hit to their budgets in just four months,\u201d said Sally Tindall (pictured right), data insights director at Canstar.com.au.<\/p>\n

\u201cRight now, home buyers are facing the second highest cash rate setting this country has seen in the last 14 years, at the same time property prices in key areas<\/a> continue to march north, albeit at a slower pace. This makes what was already a tricky equation a near-impossible puzzle to solve for many prospective home owners.<\/p>\n","protected":false},"excerpt":{"rendered":"The estimate assumes an owner-occupier application with no other debts, no dependants and minimum expenses. Canstar noted that…\n","protected":false},"author":2,"featured_media":392146,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[63721,79,118441,179,18,19,17,178968],"class_list":["post-392145","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-borrowing","tag-business","tag-cash-rate","tag-economy","tag-eire","tag-ie","tag-ireland","tag-rate-rise"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116252529830355042","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/392145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=392145"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/392145\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/392146"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=392145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=392145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=392145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}