On 7th February 2023, the RBA raised interest rates for the ninth time in the space of a year.
The RBA has lost control of monetary policy and unfortunately it’s the battlers that are going to suffer the most.
The effects of interest rate rises will be most severe on those who took out fixed rate mortgages in 2020, thinking that rates wouldn’t lift substantially until 2024. This was based on the RBA’s guidance that said they couldn’t see any need to lift rates before then.
There are approximately 800,000 borrowers who will come off fixed-rate mortgages this year with many expected to default as their interest costs will more than double.
For many households, further increases in interest rates will push them over the edge and into financial stress.
Do you have a mortgage and will be put at risk of defaulting on your repayment, or be put in serious financial stress, should interest rates keep rising?
