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Do you think interest rates will rise putting households with large mortgages under stress?

Answered 7 months ago


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ANSWER
7 months ago
I hope so, cause it’ll bring down house prices and be a good time to buy ore first home

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REPLY
7 months ago
I don’t think it works quite like that to be honest. Default rates on mortgages tend to be quite low, as you can imagine people will normally move heaven and earth to keep their homes so while many end up experiencing financial stress, most will be able to ride the hard times, even if it means cutting back on everything else.

ANSWER
7 months ago
Yes. Rates have to rise eventually. Probably not until 2022/3. A tell of what banks expect to happen is what they change fixed rates. 2-3 yr rates are low, 5 yr fixed have been adjusted higher. Not a guarantee but an indicator of what they expect to happen.

Rates rise to control inflation, & keep it between 2-3%, not properly prices. When the reserve bank starts to announce inflation is rising then the upward rate cycle begins. It'll be slow, but for anyone with a mortgage I'd be aiming to increase repayments as soon as possible. I know people with 900k mortgages. 1% rise is 20=25k a year more! Madness!

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REPLY
7 months ago
900k mortgages! That's insane. I'd rather rent & not have any debt, then have that kind of debt hanging over my head. How stressful.

REPLY
7 months ago
How is 1 per cent of 900,000 an extra 20 to 25k? :-/

ANSWER
7 months ago
Yes. There is no wage growth to support the current madness that is being played out across capital cities. The government is only going to create more bad debt and housing equality issues by not lifting them sooner.

ANSWER
7 months ago
Yes i do