by Simian_Stacker
Nearly a million Aussie borrowers about to learn the difference between “homeowner” and “mortgage payer”.
via news.com.au:
Hundreds of thousands of Aussies are bracing to fall off a ‘mortgage cliff’ which could cost them as much as an extra $24,000 a year.
On Tuesday, Australia’s central bank increased interest rates for the 12th time in the past 14 months, with warnings of more to come.
Now a growing group of Australians are facing being suddenly plunged into debt when their fixed mortgage expires.
In the next six months, a whopping 880,000 homeowners will have to switch from fixed to variable property loans.
Next year, a further 450,000 loans will expire.
Data from property analysis firm CoreLogic has found that 35 per cent of all outstanding fixed mortgages will expire this year, meaning 23 per cent of all home loans will be repriced.
On current rates, a household with a $1 million loan will need to scrounge together an additional $2000 a month, or $24,000 per year, in order to keep their bank happy.