Living on the brink
Alarming new research has revealed that one in four Australians with a mortgage would no longer be able to afford their home loan if interest rates increased by just 1 per cent.
However, despite this threat, most people in this predicament are complacent when it comes to shopping around for a better loan.
Kevin Sherman, general manager of the website that undertook the study, www.artog.com.au, is urging all Australians to take ownership of their situation in preparation for future rate rises.
The online survey of more than 7,000 people found that the pressure of meeting mortgage repayments took a toll on a person’s wellbeing.
Specifically, one in five Australians no longer go on holidays and have reduced the quality of food they purchase.
The survey also discovered mortgages were having a negative effect on relationships, with 16 per cent claiming their loan was placing unnecessary stress between partners.
Fortunately, Sherman said there were options available that could help to lessen the stress associated with mortgages.
“Don’t wait until it’s too late, act now — there are many options available straight away that could reduce monthly mortgage repayments,” he said.
“Complacency is not an option, if you’re living on the brink you should immediately start shopping around for a better home loan.
“One easy way is to use a free financial services website like Artog, which offers tools that will help you find a mortgage that better suits your needs.”
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