Home News Rising mortgage rates put fear into mortgage holders

Rising mortgage rates put fear into mortgage holders

Font size :
A new survey has revealed that at least 20% of New South Wales mortgage holders are worried about the prospect of increasing mortgage rates.

The survey, conducted by Galaxy Research for debt solutions provider Fox Symes, show that even with the interest rates at a record low of 1.5%, half of NSW mortgage holders doubt their ability to make their home loan repayments.

“People are struggling with mortgage repayments, which is compounded by wage stagnation and rising every day for things like food and utilities," said Deborah Southon, director of Fox Symes.

The repayment on an average loan in June 2010 was at $2,402.56 a month at an official cash rate of 4.5%. Today, repayments on an average loan are at $2,395.49, even with a lower cash rate, owing to a higher average loan size.

In the case of a 30-year $400,000 loan, principal and interest repayments will be at least, $2,245 a month, at the average standard variable rate of 5.4%.

With a 1% increase on the rates, mortgage holders will have to pay $260 more in interest every month.

“When working out whether you can afford to take on new debt, base your loan repayments on a rate of 7% (the longer-term interest rate average) ans that provides a reasonable buffer for rate hikes,” suggested Pass Go Home Loans managing director Jamie Moore.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Aug 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords