Almost half Australian borrowers are worried about mortgage stress, study shows
Kanebridge News
Share Button

Almost half Australian borrowers are worried about mortgage stress, study shows

Concerns about mortgage stress are on the rise as interest rates and cost of living bite

By Robyn Willis
Tue, Oct 11, 2022 10:44amGrey Clock 2 min

Almost half of all Australian mortgage holders are worried that they are headed for mortgage stress, new research reveals.

Research commissioned by buyer’s agents Aus Property Professionals found that 45 percent of home loan borrowers were concerned sharp interest rate rises would put household budgets under pressure.

Despite statements by RBA Governor Philip Lowe that interest rates were unlikely to rise until 2024, there have been six consecutive rate increases since May, with the current cash rate at 2.6 percent. The RBA has announced the cuts in an attempt to drive down inflation to somewhere between 2 and 3 percent. It currently sits at more than six percent. In a speech to the Anika Foundation last month, Mr Lowe said inflation was expected to average at 1.75 percent over 2022 and the sharp rise had taken the RBA by surprise.

Founder and director of Aus Property Professionals, Lloyd Edge, said interest rate increases would normally see between 25 and 30 percent of borrowers at risk of mortgage stress but a combination of pressures had exacerbated the situation.

“At the moment, people are also concerned about cost of living pressures and the price of petrol going up,” he said. “Some people are also holding off buying homes and instead investing (in property they won’t live in) to reflect their serviceability to repay a loan.”

Research also revealed that 28 percent of borrowers reported that they had borrowed too close to their capacity in order to buy a home while a quarter of respondents said they had lost their job or suffered a drop in income.

Mr Edge said it was always advisable to avoid borrowing the maximum amount, even if it meant buying an investment property before purchasing a home to live in. He suggested buying a more affordable property outside the capital cities in a high yield area as an option. 

“With the interest rates really low, some people were getting in a bit over their heads but it has been hard in this market to buy something for less than your capacity to borrow,” he said. “People need to manage their expectations and perhaps buy something smaller. It’s important not to overstretch yourself because as interest rates continue to go up you need that cash buffer.”



MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Related Stories
Lifestyle
Sparkling wine flows as Australian winemaker takes out top international award
By Robyn Willis 11/07/2024
Lifestyle
A Rare, Historic Porsche Racer Leads RM Sotheby’s New German Sale
By JIM MOTAVALLI 11/07/2024
Lifestyle
AI Will Revolutionise How You Travel, Priceline CEO Says
By MICHAEL KAMINER 09/07/2024
Sparkling wine flows as Australian winemaker takes out top international award

The Tasmanian-based winemaker was among a number of Australian producers to be honoured at the event in London this week

By Robyn Willis
Thu, Jul 11, 2024 2 min

An Australian winemaker has taken out the top prize for sparkling wine at the International Wine Challenge, the first time a local winemaker has done so. It marks just the second time in the competition’s 40-year history that the award has gone to a winemaker outside France’s Champagne region.

Tasmanian-based House of Arras’ chief winemaker, Ed Carr, was presented with the award for Sparkling Winemaker of the Year at a special ceremony in London earlier this week.

“I’m incredibly honoured to be named this year’s Sparkling Winemaker of the Year. It’s a challenge to describe the feeling, but I’m proud to be recognised amongst my peers for such a significant international award,” Mr Carr said.

The IWC is considered one of the world’s most rigorous and impartial wine competitions. This year, France topped the medal tally with 72 gold, 394 silver and 455 bronze medals – extending their haul by 84 more wins than last year.  

The 40-year-old competition is considered one of the most influential events in the winemaking calendar.

Australian winemakers took out second place, with 54 gold, 250 silver and 154 bronze medals. Australia also won 19 trophies, 10 of which went to South Australia.

House of Arras also received the Australian Sparkling Trophy for its 2014 House of Arras Blanc de Blancs, as well as two gold and six silver medals.

Tasmania’s cool climate and soil make it ideal for producing world-class sparkling wine says Ed Carr (pictured).

Mr Carr said Tasmania’s cool climate and terroir were equal to the world’s best sparkling wine regions. The wins follow a strong showing this year at Australia’s National Wine Show and the Decanter World Wine Awards, where House of Arras also collected awards.

“2024 has been an outstanding year on the awards front, and I’m honoured to add this recent recognition from the International Wine Challenge to the mantle,” he said. 

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

Related Stories
Property
These little known suburbs are offering the highest rental yields around the country
By Bronwyn Allen 25/06/2024
Property
Property of the Week: 5903/1A Barangaroo Avenue, Barangaroo
By Josh Bozin 19/06/2024
Money
Your Old Clothes Are Worth Billions
By JINJOO LEE 04/07/2024
0
    Your Cart
    Your cart is emptyReturn to Shop