It’s no secret that Australia is facing enormous mortgage stress right about now.  And, for some, it’s set to become a whole lot worse over the coming months.

With already 1.8 billion households suffering financially, things won’t exactly look any brighter if the RBA hikes their rates yet again.

It’s forecast that VIC, NSW and QLD homeowners will cop the biggest hit.  With interest rates rising and property values sliding, eastern state residents must surely be shaking in their boots.

And the predictions aren’t directed at low-income regions alone.  Some of the nation’s most affluent neighbourhoods will also be stung.

If interest rates rise again by a mere 1%, it’s expected that another 300,000 households will fall into severe debt overload in the next year.  And if inflation keeps going up while wages stay put, many will be left scrambling to cope.

 

Here’s what it currently looks like in real life.

 

  • $500k loan = monthly repayment increase of $140 = total of $472 per month since May
  • $750K loan = monthly repayment increase of $211 = total of $708 per month since May
  • $1m loan = monthly repayment increase of $281 = total of $994 per month since May

 

A household in mortgage stress is one whose monthly surplus is zero or runs negative – due to home loan repayments.  And judging by the figures above, it’s easy to see how more than half of Australia’s mortgagees might fall prey.

In Melbourne, it’s parts of the inner south that are getting kicked the hardest.

So, where does this leave Aussie homeowners?  Is there any light at the end of the tunnel?

The good news is – yes!  That’s exactly what GSA offers.  We’re all about helping everyday Australians pay off their mortgage sooner.

Come and have a chat with us.  We take the stress out, so you don’t have to.