The government’s revised stage three tax cuts will buoy home owners coming off cheap fixed rate loans and onto higher cost variable loans as borrowers navigate the final hurdle of the so-called mortgage cliff.

Lendi chief executive David Hyman cautioned that the full toll of the mortgage cliff was yet to be seen, but said there was renewed optimism that most of these loans – written during the pandemic when loans were at record lows – were now on variable rates and with little up-tick in delinquencies.