The daunting prospect of interest rates remaining high into next year would force about 165,000 home owners to sell up, research released today has found.
From the 1012 respondents in the Finder survey, 27 per cent said they were not prepared for the cash rate to stay high – equivalent to about 891,000 people.
And 5 per cent – representing 165,000 people – would have to sell their home if rates do not fall by next year, according to the research.
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About the same number had taken a second job to help with mortgage repayments.
Finder personal finance expert Sarah Megginson said people who were counting on a rate cut by now have found themselves “hung high and dry”.
“Many homeowners are stretched so thin financially, they’re facing the prospect of having to sell their home, or they’re turning to loved ones for support with paying their bills,” she said.
“With interest rates projected to remain high until next year – and some even calling for a hike in August – mortgage holders could be waiting longer than they expected for this pressure to.”
Household expenses had already been reduced by 46 per cent of those canvassed, while 22 per cent said they could still comfortably cover their mortgage.
Finder also found further 3 per cent would have to rent out a room in their house, and 2 per cent would be forced to ask their lender for a repayment holiday.
Last month the Reserve Bank of Australia decided to keep interest rates on hold at 4.35 per cent, a 13-year high.
The central bank’s next two-day board meeting will be from August 5.
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