{"id":26292,"date":"2017-09-30T18:05:55","date_gmt":"2017-09-30T23:05:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26292"},"modified":"2017-09-30T18:05:55","modified_gmt":"2017-09-30T23:05:55","slug":"financial-hell-57-in-australia-cannot-afford-an-extra-100-if-interest-rates-rise-stress-in-wealthiest-areas","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26292","title":{"rendered":"Financial Hell: 57% in Australia Cannot Afford An Extra $100 if Interest Rates Rise, Stress in Wealthiest\u00a0Areas"},"content":{"rendered":"
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Financial Hell: 57% in Australia Cannot Afford An Extra $100 if Interest Rates Rise, Stress in Wealthiest\u00a0Areas<\/a><\/h3>\n<\/header>\n
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A new study shows 57% of Australia mortgage holders could not handle a $100 increase in their loan repayment.<\/div>\n
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Stress has turned up in even the wealthiest cities.<\/p>\n

But who is truly wealthy? Paper profits on homes with enormous mortgages does not constitute wealth.
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Please consider $100 Tipping Point for 57% of Mortgage Holders<\/a>.<\/p>\n

A staggering 57% of mortgage holders could not handle a $100 increase in their loan repayments, according to new research by Finder.com.au.<\/p>\n

This additional $100 is equivalent to an interest rate rise of just 0.45% based on the national average mortgage of $360,600. This means the average standard variable rate of 4.83% would only have to rise to 5.28% to put more than half of mortgage holders in stress.<\/p>\n

\u201cThe typical mortgage holder will begin to struggle once interest rates reach around 5.28% \u2013 that\u2019s a pretty small window before borrowing costs start to hurt,\u201d she said.<\/p>\n

With the research also showing that 39% of all mortgages are interest-only, this highlights why the Reserve Bank of Australia (RBA) and the Australian Prudential Regulation Authority (APRA) have shown some concern, she added.<\/p>\n

Comparing genders, 63% of women and 50% of men would struggle to repay their mortgages with an increase of less than $100 per month.<\/p>\n

Across the states, South Australian borrowers were the worst placed with 70% saying they could not handle an increase of less than $100 per month. This figure was lower in New South Wales, Tasmania and Western Australia at 59% and further dropped to 51% in Victoria.<\/p><\/blockquote>\n

Stress in Wealthiest Areas<\/strong><\/p>\n

Also consider Severe mortgage stress is cropping up in some of Australia\u2019s richest suburbs<\/a>.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Financial Hell: 57% in Australia Cannot Afford An Extra $100 if Interest Rates Rise, Stress in Wealthiest\u00a0Areas A new study shows 57% of Australia mortgage holders could not handle a $100 increase in their loan repayment. Stress has turned up in even the wealthiest cities. But who is truly wealthy? Paper profits on homes with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[41,431,14648,13390],"class_list":["post-26292","post","type-post","status-publish","format-standard","hentry","category-economics","tag-australia","tag-interest-rates","tag-michael-shedlock","tag-mishtalk"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26292","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26292"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26292\/revisions"}],"predecessor-version":[{"id":26293,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26292\/revisions\/26293"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}