Mortgage stress will spread quickly if interest rates rise ABC News
It’s a “perfect storm” that means mortgage stress will spread swiftly, even with small increases in interest rates, according to mortgage industry expert Martin North.
Kirthi Demeijer is one of the thousands of Australians having trouble making her home loan repayments. Four Corners uncovers the problems with the housing market.
Already, one in four mortgaged households are in stress — meaning they do not have enough income to cover mortgage repayments and other living expenses.
North’s modelling shows how this figure would rise — and which neighbourhoods would be hit hardest — if interest rates were raised. It is based on research by his highly-respected consultancy, Digital Finance Analytics, which has surveyed the finances of 52,000 households a year for more than 10 years.