How bad will the looming mortgage cliff be (in five charts)?
Fixed-rate mortgage borrowers have so far been insulated from the RBA’s interest rate rises. But $350 billion of credit is now expiring, so what does it mean for households?
Up to 880,000 Australian households will need to find hundreds, or even thousands, of dollars more each month when their fixed-rate periods expire this year and the rock-bottom interest rates they’ve enjoyed since the start of the pandemic become a thing of the past.
Until now, these borrowers had been insulated against rate rises from the Reserve Bank of Australia that sent variable mortgage rates rocketing higher.
Michael ReadEconomics correspondentMichael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
