More than a million Australian families face mortgage crisis as RBA rate hike looms
A survey indicates that over a million Australian families are at risk of a mortgage crisis as the Reserve Bank of Australia prepares for another interest rate hike. Many homeowners report they have little financial buffer and would be forced to consider selling their properties if rates rise further.
Why it matters
It underscores the severe financial pressure on households and the potential for a housing market correction due to rising interest rates.
A looming rate hike at the September RBA meeting could spell disaster for more than a million families, according to new research.
An exclusive survey by Money.com.au revealed 39 per cent of mortgage holders weren’t confident they could continue to afford home loan repayments if interest rates were to rise again.
A worrying 9 per cent of the homeowners said they’d have to seriously consider selling their properties if their interest rate increased by the 0.25 per cent that the RBA is widely expected to hike by next week.
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One in five said it would take two standard rate hikes, or 0.5 per cent, to force them to seriously consider selling. Another 15 per cent said it would take a full percentage point, or four hikes before they were in the same boat.
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