RESIDENTIAL PROPERTY
NEARLY half of mortgage holders in Australia are contemplating selling their homes and personal belongings to cope with the strain of rising home loan repayments...
A Canstar survey of over 800 Australian mortgage holders found that since the rate hikes that began two years ago, 49% have considered selling their home, personal items...
Alarmingly, this consideration has turned into reality for almost half of this group – 46% – or close to one-quarter (23%) of all borrowers...
The strain could become worse. Despite the Reserve Bank holding interest rates at 4.35% this week, governor Michele Bullock warned of a “bumpy” road ahead as...
According to the Canstar survey, among the most common sacrifices made by borrowers who have sold items to alleviate financial pressures are personal effects such as furniture...
Following closely behind, the family home emerges as the second most common asset sold, with 28% choosing to relocate, while 22% each opted to downsize or move in with...
One-fifth parted ways with jewellery and valuables, while an equal percentage sought to generate additional income and sold their skills or labour, and 19% resorted to...
Canstar’s finance expert, Steve Mickenbecker says these findings highlight the two-speed borrower market, with only a portion of mortgage holders grappling with the...
“Repayments rising by 62% coupled with high inflation creates a big enough event for many borrowers to trigger a response like selling assets to make ends meet. This is especially true for...
Roy Morgan research shows 1.531 million mortgage holders – or 30.3% – were “at risk” or “mortgage stress” in March quarter. That number has increased by 724,000 since...
Mickenbecker said financial crisis is “rightly a time for re-evaluation of priorities and parting with some possessions is a perfectly logical reaction if it means holding onto...
“The real worry though is that people are parting with investments and worse still selling their homes because they have hit last resort. This is long-term damage being done and...
He said borrowers may have the options of refinancing to a longer term, or seeking short-term relief with a lower repayment or an interest only loan...
He said repayment relief measures “aren’t debt forgiveness” and in the longer term they will end up costing borrowers more interest on their loan and take longer repay...