Homeowners are facing new pressure as ultra-low fixed loans expire. On the eve of the RBA’s next big call, thousands are hitting the mortgage cliff and going to extremes to save their homes.
On the eve of the Reserve Bank of Australia’s (RBA) next big call, thousands of homeowners are facing a new pressure as ultra-low fixed loans expire and they hit the mortgage cliff.
As interest rates remain at record lows, many Australians have taken advantage of these low rates by signing up to fixed rate mortgages. However, these fixed rate mortgages are now coming to an end and homeowners are being forced to refinance their loans or face higher repayments.
This has created a situation where many homeowners are having to sell up in order to pay off their loan and avoid going into debt. With the current market conditions, this can be difficult as house prices have been falling since late 2021. As a result, some homeowners have had to resort to extreme measures such as taking out second mortgages or selling assets in order to pay off their loan.
The RBA is expected to make an announcement soon on whether it will keep interest rates at their current level or raise them. This decision could have major implications for those who are currently facing the mortgage cliff as any increase in interest rates could make it even more difficult for them to stay afloat financially.
It is clear that many Australians are facing a tough time when it comes to repaying their mortgages but with the right support and guidance, they can get back on track financially and avoid having to sell up due to financial hardship.
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