There are fears the Reserve Bank’s rapid succession of interest rate rises will lead to more young Australians being crippled by mortgage stress.
Yesterday the Reserve Bank (RBA) moved rates up 0.25 percentage points to 4.5 per cent – the sixth increase in eight months.
The rises come on the back of record low interest rates during the global financial crisis.
Aussie Home Loans chief John Symond says many people have been unprepared for the recent spate of rate rises.“That’s the unfortunate downside in borrowing money, particularly at a cycle where we were having interest rates at historic lows and now very rapidly interest rates have been increased by the Reserve Bank,” he said.
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