Perth, May 4: About 100,000 Australian mortgage holders say they are just one interest rate rise away from falling behind on their home loan, new Finder research shows.
The survey found 3 per cent of borrowers are already on the brink, while 9 per cent say they could no longer sustain their mortgage if faced with one or two more rate rises.
That equates to about 297,000 mortgagors who say they could default if rates rise again once or twice.
The findings come as 75 per cent of experts in Finder’s RBA Cash Rate Survey anticipate a cash rate hike in May.
Finder money and home loans expert Richard Whitten said mortgage stress was worsening as households continued to deal with high living costs.
“Many Australians are walking a financial tightrope and it wouldn’t take much to tip them over,” Whitten said.
“This research reveals how little buffer many households have left.
“When you consider how persistently high the cost of living has been over many years, it’s no surprise so many borrowers are nearing their limit again.”
Whitten said borrowers should contact their lender early if they were struggling, rather than waiting until they missed repayments.
“Speak to your lender as soon as possible if you’re struggling – there may be options available to help you stay on top of repayments,” he said.
“Refinancing or negotiating a cheaper rate could make a meaningful difference to your monthly costs.”
Finder’s survey found 37 per cent of borrowers said four more rate rises would be their limit, while 22 per cent believed they could withstand five more increases.
A further 23 per cent said they could handle six or more rate rises.
Finder said borrowers experiencing mortgage stress should review spending, speak to their lender about repayment options and consider ways to increase income or reduce household costs.
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