The Jones family are about to hit the mortgage cliff, and there are millions more like them

abc.net.au/news/millions-on-a-mortgage-cliff-as-they-roll-off-low-rate-home-loan/102557726More than a million Australian households with home loans are facing a huge financial shock over the next year and a half.

"Obviously, that makes us very, very nervous because we've obviously got the worst example of what's going to happen to the 80 per cent when that fixed rate ends," Mr Jones said. A report by the central bank's economists found that in mid-2019 fixed-rate mortgages only made up about 15 per cent of all lending for housing.

"I don't think we talked about it enough, there's going to be a severe amount of whiplash," Mr Watkins said. "More properties have sold in June than any other month this year. So I think that's talking to people that are dropping onto these higher rates, and just not being able to afford the loan."Mr Watkins is concerned that people won't be able to pay — and won't be able to refinance to a lower rate.

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