HLG039 The risk of losing your home (511 words)

Have you considered what may happen if your interest rates increase? The unfortunate reality is that many families will face financial distress, rather quickly. This article discusses how just a small increase to interest rates can cause budgets to crumble and what you can do to prepare yourself financially.

As interest rates rise and large numbers of fixed low rate mortgages end, an unfortunate reality is looming with financial distress becoming all too real for many.

Market research firm Roy Morgan reports mortgage stress hit its highest seen since April 2018, with 22.6 per cent of mortgage holders ‘At Risk’ in November 2022.

In addition, calculations by the fintech company, Digital Finance Analytics, suggest just a 0.5 per rise in home loan interest rates could push another 220,000 Australian households into financial difficulties.