ANALYSIS: If interest rates rise as much as markets say they will, we won't be able to afford the extra repayments
Many of the fixed-rate mortgages were taken out during COVID at annual rates as low as 2 per cent.
When those fixed rates end those homeowners will find themselves paying 5 per cent or 6 per cent per year, shelling out as much as $3,000 per month instead of $2,000.The pricing of deals on the futures market factors in an increase in the Reserve Bank's cash rate from 0.10 per cent to 3.5 per cent by June next year, enough to push up the standard variable mortgage rate from around 2.25 per cent to 5.65 per cent.
US President Richard Nixon had an economic adviser by the name of Herbert Stein with an uncommonly-developed sense of common sense. In his later years he wrote anTo a reader wanting a cure for unrequited love, he wrote that the best solution was "requited love". To a reader concerned about her inability to make small talk, he wrote that what people want most is a "good listener".
Reserve Bank governor Philip Lowe has said the RBA will likely keep raising interest rates over the months ahead.
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