Could Australian property prices crash?

Rates and Fees verified correct on February 27th, 2017

Overseas observers have warned us for years that Aussie property could be due for a crash. How much truth is there to their claims?

The global financial crisis (GFC) hit housing markets around the world hard. The United States, Ireland, Iceland and a myriad of other countries saw house prices collapse, leading to massive foreclosures, bank failures, bailouts and economic shocks that continue to echo.

However, throughout all of this, Australian property remained stubbornly resilient. Since the GFC, Aussie property prices have grown to dizzying heights. So much so, in fact, that the Melbourne Institute predicts that high prices will see Australia’s home ownership rate fall below 50% in the coming years.

Moreover, forecasters have flagged lean years ahead for the housing market. BIS Shrapnel recently predicted that house prices would fall across all Australia’s capital cities in the next two years as supply outpaces demand.

So, are the prognosticators right? Is the Aussie property bubble due to burst? Watch the video below to see finder.com.au home loans publisher Marc Terrano and home loans editor Adam Smith discuss the fundamentals behind Australia’s unique property market.

If you're feeling optimistic about the property market and are looking to invest, ensure you have the best home loan you can get. Compare loans in the table below the video to get a good idea of what's out there.

Compare today's home loan rates

Rates last updated February 26th, 2017.

Newcastle Permanent Building Society Fixed Rate Home Loan - 1 Year Fixed (Owner Occupier)

Comparison rate increases by 0.03% | Interest rate increases by 0.25%

February 13th, 2017

Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Years Fixed (Owner Occupier)

Comparative rate increases by 0.04% | Interest rate increases by 0.25%

February 13th, 2017

HSBC Home Value Loan - Resident Owner Occupier only

Application fee waived for Resident Owner Occupier only.

February 15th, 2017

View latest updates

Jodie Humphries Jodie
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Loan purpose
Offset account
Loan type
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Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment
HSBC Home Value Loan - Resident Owner Occupier only
Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.
3.75% 3.77% $0 $0 p.a. 90% Go to site More info
Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.84% 4.22% $0 $395 p.a. 95% Go to site More info
IMB Budget Home Loan - LVR <=90% (Owner Occupier)
A competitive budget rate without any unwanted bells and whistles.
3.87% 3.92% $445 $0 p.a. 90% Go to site More info
Beyond Bank Low Rate Special Home Loan
A special low variable rate for Owner Occupier with 100% offset account and no application or ongoing fees.
3.73% 3.73% $0 $0 p.a. 70% Go to site More info
Switzer Home Loan
No upfront or ongoing fees and a competitive variable rate for owner occupiers.
3.89% 3.89% $0 $0 p.a. 90% Go to site More info
Auswide Bank Home Loan Plus with Freedom Package - Special Package Discount LVR <= 90% (Owner Occupier) P&I
A high maximum LVR home loan with redraw facility and additional payments.
3.79% 4.18% $0 $395 p.a. 90% Go to site More info
CUA Fresh Start Basic Variable Home Loan - Owner Occupier
A basic mortgage with flexible repayments options.
3.89% 3.94% $600 $0 p.a. 90% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier Special Rate)
A limited time 2 year fixed rate for owner occupiers. Conditions apply.
3.89% 4.79% $0 $0 p.a. 95% Go to site More info
Bank Australia Basic Home Loan - Variable (Owner Occupier)
A competitive variable that allows borrowers to borrow a minimum of $100,000 with a $0 ongoing fee.
3.79% 3.83% $0 $0 p.a. 80% Go to site More info
ING  DIRECT Orange Advantage Loan - $150,000+ (LVR <= 80% Owner Occupier)
A fully featured home loan with an offset account and discounts available.
3.89% 4.11% $0 $199 p.a. 80% Go to site More info
3.85% 4.26% $0 $395 p.a. 80% Go to site More info
Newcastle Permanent Building Society Fixed Rate Home Loan - 3 Year Fixed (Owner Occupier Special Rate)
A limited time fixed rate home loan with extra repayment abilities. Conditions apply.
3.99% 4.73% $0 $0 p.a. 95% Go to site More info
Australian Unity Kick Starter Home Loan
$0 ongoing service fees, maximum 80% LVR and a linked transaction account.
3.79% 3.82% $600 $0 p.a. 80% Go to site More info
CUA Fixed Rate Home Loan - 2 Year Fixed (Owner Occupier)
A fixed home loan with no ongoing fees and flexible repayments options.
3.84% 4.59% $600 $0 p.a. 95% Go to site More info
3.94% 4.33% $0 $395 p.a. 90% Go to site More info

Want to compare more rates? Check out our home loan comparison.

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Related Posts

HSBC Home Value Loan - Resident Owner Occupier only

Enjoy the low variable rate with $0 ongoing fee and borrow up to 90% LVR.

Greater Bank Ultimate Home Loan - Discounted 1 Year Fixed LVR ≤85% ($150K+ Owner Occupier)

Discount off an already competitive interest rate for loans over $150k. NSW, QLD and ACT residents only.

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier)

Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.

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