Rising interest rates and repayment crisis are hitting homeowners

Repayments on home loans have a big impact on households, which confiscate most household income.

Caucasian businessman climbing on the cliff while pushing a stone with mortgage word Source: iStockphoto / CreativaImages/Getty Images/iStockphoto

The lending rate in Australia increased from 0.1 per cent to 4.1 per cent in just the short term of 2022 and the first half of 2023.

At first, some borrowers could avoid rising interest rates by switching their loans to low fixed rates, but hundreds of thousands of households in Australia will bear the brunt of their fixed rates set to expire in 2023 and 2024.

New research from financial comparison website Mozo shows one in six Australians would have to shell out 40 to 60 per cent of their monthly household income to cover their mortgage.

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