One in three mortgage holders under financial stress
Households across the country are reviewing budgets yet again, with more and more slipping into home loan arrears as the continual cycle of interest rate hikes takes its toll.
Falling property prices have the capacity to force some borrowers into ‘mortgage prison’ where they are unable to refinance. (Image source: Shutterstock.com)
Around half of all Australian mortgage holders are under financial strain after the latest hike to the official cash rate that dictates the interest banks charge borrowers.
Research released Friday (7 October) by comparison website Mozo showed that almost a third (31 per cent) of borrowers are under financial stress but still able to pay their mortgage.
More disconcertingly, 14 per cent are now in extreme financial stress and unable to meet the…
