A growing number of Australian have become “mortgage prisoners” – trapped by crippling mortgages they are unable to renegotiate.
“Many are mortgage prisoners and a mortgage prisoner is unable to refinance because of the serviceability buffers.”A serviceability buffer, used to help determine borrowing capacity, is the rate a lender assesses a customer’s ability to meet repayments. But mortgage rates have shot up by about 3.5 percentage points since May last year, in line with the rate-hiking cycle of the Reserve Bank.
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No one is trapped. If you did not plan for higher interest rates and all that comes with it then you shouldn't have been given a home loan in the first instance. It ain't rocket science.
You people supported a labor government - this is price you pay.
Labor’s fault.
Does Australia not have fixed rate mortgages?
barrett_ink After 30yrs stripping wealth, Australia is now a finance economy, teetering with debt. The US parasite must be kicked out.
'Soaring'? Dude they are like 5.5%. We came from record low rates . People borrowed more than they could afford to pay back.
The real prisoners are the renters paying for landlords mortgages
Don’t know why some people thought interest rates would stay down at a historic low
Not really. The cafes, bars and restaurants are all full and there hasn't been any fire sale. Capitulation will be a 40% drop in prices. We have been told for decades that will never happen so people can afford high interest rates. I'm in cash, so bring it on.
Interest rates aren’t ‘soaring’. They’re returning to long-term, baseline levels. What HAS been allowed to ‘soar’ has been the ‘investment vehicle’ feeding frenzy that has been Australia’s real estate market for the last 20 years, supercharged by rampaging immigration levels.
THEY BORROWED THE MONEY
Ffs they only have themselves to blame sorry. You borrow to the limit you then struggle. Rates have always gone up and down. Anyone who thought they’d stay that low was a fool. Even now they are historically low.
🤷♂️ You have equity and hope.
Aaaaaaaaaaaaaaand AlboMP ignores it showing he does not care about Australians. He wants his legacy and only cares about that. When most big things are past by the LNP all Labor has is Medicare and that was decades ago. All Albo cares is having his signature on the voice.
Perhaps taking out a loan you could barely afford, at record low interest rates, and expecting them to stay that way for 25 years wasn’t such a great idea.
Do a data report that connects people feeling trapped, mortgage stress, and public transport mapping. 'Prisoner' is a pretty poor term. White Australia history is that we are a convict country.
Problem is/was the actual cost of a home.
. Sustainable health systems use digital health software and electronic health records to measure stress: financial, work, relationships, housing, discrimination, 24h cortisol/melatonin, 24h heart rate variability, HF-HRV, nighttime SDNN, gut-brain axis health (butyrate/LPS) .
RBA Senate Estimates. The govt has the power to overturn the RBA decision to rase interest rates. Albo didn’t use he’s powers to stop interest rates going up, WHY?
Just cut back on the wagyu and shiraz
Not all but a lot still have 2 or 3 large tv’s, the leather couches, the coffee machine and he’s driving a new dual cab ute while she is driving the euro SUV. The ‘must have it now’ mentality is the cause of the problems
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