Mar 7, 2023
Amidst another RBA rate hike in
March, Australians are not only facing the looming threat of
falling off the mortgage cliff but are also finding themselves
trapped in a different kind of financial dilemma — a mortgage
prison.
Smart Property Investment’s Phil Tarrant and Finni
Mortgages’ chief executive Paul Glossop acknowledged the increased
pocket pain that borrowers are burdened with, thanks to the central
bank’s continued monetary policy tightening in 2023.
And while refinancing has become the go-to recourse for borrowers
to deal with the blows, they shine a spotlight on borrowers who
find themselves unable to switch lenders due to rate hikes
negatively impacting their serviceability.
On that note, they unpack the “moving parts” that impact a
borrower’s serviceability and delve into possible solutions to
escape (or prevent) being stuck in mortgage prison.