Eshmee Sharran and Sharran Sreekant have sold their townhouse and bought a house,but high interest rates made it a challenge.Credit:Dion Georgopoulos
However,high interest rates made it challenging to find a house within their budget in the same suburb,so they compromised by moving to a suburb further out.
“The goal was to keep this townhouse,rent it out and buy another property for us to live in and I thought I had sufficient funds and borrowing capacity,” the technology worker said. “We realised that the numbers just weren’t working.”
“Three years ago,I could have bought a really nice house in the same suburb.”
His mortgage broker,Narender Saharan,said some of his clients have been looking for a home but left it for too long,and the interest rate environment has changed.
“Most people aren’t able to get the same amount of lending as what they were in 2021,2022. Specifically after 2022,the borrowing has only dropped,” the principal broker at Kandid Loans said.
Some of his potential buyers who could have borrowed about $1.7 million to $1.8 million previously could now only access $1.1 million to $1.2 million,he said.
Clients are looking for smaller properties,looking at different suburbs or asking for help from parents,he said.