Key facts
- Banks are offering incentives like phone bill credits and travel tokens.
- Property prices have seen significant falls across Australian capital cities.
- Borrowing money at 6.5% is contrasted with renting at 3.5%.
Australian banks are easing mortgage requirements and offering incentives such as phone bill credits and travel tokens to attract customers amidst a significant housing slump. Property prices have been declining across major capital cities, and the potential for an interest rate hike by the Reserve Bank of Australia (RBA) presents further challenges for the financial sector. Analysts suggest that with borrowing costs high relative to rental yields, house prices may continue to drift lower.