Rate rise to hurt many

The Gold Coast Bulletin - - NEWS -

HUN­DREDS of thou­sands of home loan cus­tomers will be pushed to the brink if in­ter­est rates rise and won’t cope with larger re­pay­ments, alarm­ing re­search has re­vealed.

Fi­nan­cial ser­vices firm Canstar quizzed more than 700 Aus­tralian bor­row­ers and found about one in five ex­ist­ing mort­gage cus­tomers (17 per cent) would not be able to af­ford one rate rise of 25 ba­sis points when it hap­pens.

This would add about $45 per month to re­pay­ments on a stan­dard $300,000 30-year home loan. Based on ABS data, this means about 485,000 house­holds would be strug­gling to make ends meet if they were hit by an in­ter­est rate hike.

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