Advice for home owners spooked by rising interest rates

The Economic Policy Program Director at the Grattan Institute says he has “no doubt” some Australians will be forced to sell their home in the coming months as interest rates rise.

But he’s shared some advice to those concerned they may be at risk of becoming one of them.

Brendon Coates told Neil Mitchell those who purchased recently were most at risk.

“The average buyer today is nearly two years ahead on their mortgage repayments – they were only 10 months ahead at the start of the pandemic,” he said.

“As interest rates fell, people kept paying off the mortgage.

“So a lot of people are in a reasonably good position.

“It’s those who bought recently who are really going to struggle.”

His advice? Get pro-active and shop around now, as well as considering locking in fixed rates.

Press PLAY below to hear more about what the rising rates mean

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