Increasing number of Australians are struggling to meet mortgage repayments which could have drastic knock-on effects for the broader economy
When you dramatically raise interest rates you put mortgage holders under pressure.
The Reserve Bank of Australia has been raising rates to get inflation under control, but have they created another problem in the housing market?
At the moment roughly a quarter of Aussie households are under mortgage stress.
That’s defined as spending at least 30% of total household income on mortgage repayments.
That risks a huge number of mortgage holders unable to meet those requirements. When that happens the knock on effects could be disastrous for renters and the broader economy.
