Victorian buyers locked out of 55 suburbs after Reserve Bank rate hike

Reserve Bank governor Michelle Bullock’s latest rate hike call will cut the access the average Victorian borrower has to more than 50 suburbs. Victoria’s average house hunter will be priced out of 55 suburbs after yesterday’s Reserve Bank interest rate hike. The huge cut off includes dozens of Melbourne suburbs including many once known for their affordability including Doreen, Cranbourne South, Noble Park, Caroline Springs, Heidelberg West and South Morang. For the state’s $664,000 average home loan, a figure last released by the Australian Bureau of Statistics in June, two rate hikes in as many months would have cut borrowers who were looking at that sum as their maximum down to just $630,000 — according to the federal government’s Money Smart mortgage calculator. RELATED: ‘Time for change’: New call to sack RBA today Hated money move fuels recession fears Melbourne house prices hit new low after $74k cut For those with a 20 per cent deposit ready to go, the reduction in borrowing power means they have gone from being able to afford a home worth $830,000 to just $787,500 after the latest hike goes through. Contrasted with realestate.com.au data this shows there were 458 suburbs a...