๐๐ผ๐บ๐ฒ ๐๐ผ๐ฎ๐ป๐ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ถ๐ป ๐๐ผ๐ผ๐ฑ ๐ฆ๐ต๐ฎ๐ฝ๐ฒ
The average borrower continues to remain ahead on their home loan, despite higher interest rates, as this Reserve Bank graph shows.
The Reserve Bank says the share of borrowers who are behind on their mortgage is โexpected to remain very lowโ, even if conditions worsen.
โAbout 1.5% of borrowers are estimated to have their essential expenses and mortgage costs exceed their income and be at high risk of depleting any available buffers. Even if the unemployment rate were to increase by 2 percentage points โฆ the share of existing borrowers at risk of running out of buffers over the next year or so would likely remain at low single-digit levels. Similarly, most borrowers would be well placed to service their housing loans if interest rates were to increase further.โ
Furthermore, only about 0.1% of loans are in negative equity at current housing prices, which means the overwhelming majority of forced sellers would be able to repay their mortgages.
Subiaco finance brokers are here to help
Interest rate rises are here, but you donโt have to fear with the right broker on your side.
The team at Sonam Capital are here to empower you through financial knowledge.
Weโll take the time to get to know you and your unique situation and speak in a language
you can understand, with strategies you can implement for the best possible outcomes.
Nick, Wayne and Amanda at Sonam Capital are your Subiaco finance specialists.
