Mortgages in Australia - Surviving the storm: navigating the mortgage crisis and future rate changes.
RFI Global's Kate Wilson sat down with Auzbiz TV to address concerns about mortgage stress among households, as interest rates continue to rise. RFI Global's research reveals that 31% of consumers are worried about making their mortgage payments in the next 12 months, which is a 9% increase since December. This is due to escalating rates, living costs, and uncertainty about future rate hikes.
Kate highlights that borrowers whose fixed-rate term ends in the coming year are particularly at risk, with 43% experiencing mortgage stress as the fixed rate reset approaches. Despite savings accumulated during the pandemic, one in five mortgage clients have less than three months' worth of repayments in savings.
Kate predicts a competitive banking environment in the latter half of the year, as one in three fixed-rate customers plan to refinance. She suggests that lenders should consider strategies to assist customers in this situation, as the full impact of rate hikes on household budgets is not yet known. With many customers considering switching lenders for better deals, it is essential for banks to engage proactively in conversations and provide competitive alternatives to reduce the risk of losing customers.
Watch the full video here.
Read the full Press Release here.
For more information, or to speak to a spokesperson, please contact:
Chloe James
Group Director of Media and Communications at RFI Global
Email: cjames@rfi.global
Phone: +61 0451 118 042
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