Rate stress warning for RBA
The Reserve Bank (RBA) risks subjecting a significant proportion of Aussie home borrowers to severe mortgage stress if interest rates rise by another 100 basis points next year, it has been suggested.
A report by the AAP noted that, according to a recent survey of 2,268 adults by online savings and managed fund provider RaboDirect, 75 per cent of home owners with a mortgage would suffer some form of financial stress if rates kept rising.
In addition, the research found that one in 20 people felt they would be forced to sell in such circumstances.
As the AAP observed, such survey results came before the Commonwealth Bank's decision to raise its standard variable home loan rate by 45 basis points on November 2nd.
ANZ, Westpac and NAB have all since followed suit by hiking rates by more than the Reserve Bank's official 25 basis-point increase.
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