90,000 Auustralian homeowners will be forced to sell up

Ninety thousand new home owners are expected to lose their homes as a result of rising interest rates. According to Fujitsu Consulting, up to 40% of home owners may be forced to sell their home because they haven’t budgeted for interest rates to go up as far or as fast as they have over the last 6 months.

According to Fujitsu Consulting’s executive director Martin North, for 95% of people in mortgage stress, the only way out is to sell the house

The Reserve Bank of Australia (RBA) has raised official interest rates in six steps since October 2009 from 3.0 per cent to 4.5 per cent. Standard variable interest rates are now well over seven per cent from most major lenders. 270,000 people have entered the housing market since June 2008.

If you are experiencing mortgage stress, or need a home loan review, speak to one of the mortgage brokers at Intellichoice today for assistance. Call 07 3624 1900 today.