August 14, 2023
A recent survey commissioned by Mortgage Choice has revealed the impact the tough economic environment is having on everyday Australians. The survey of 1000 people, conducted by Honeycomb Research, sought to uncover how rising interest rates are impacting Australians’ attitudes towards property and their home loans.
Mortgage Choice CEO Anthony Waldron said, “Twelve interest rate increases since May 2022 and the rising cost of living is putting pressure on people’s hip pockets, with the majority of survey respondents having postponed big life decisions.”
The research showed that 76% of mortgage holders and 78% of prospective buyers have postponed a big life decision due to the current economic climate. Australians aged 55 years and older are currently more likely to delay their retirement, and Millennials are more are likely to delay starting or expanding their family.
The most common life decisions postponed as result of rising interest rates:
- 50% of mortgage holders and 40% of prospective property buyers say they have postponed saving money.
- 31% of mortgage holders and 21% of prospective property buyers have postponed buying a car.
- 42% of prospective property buyers and 28% of mortgage holders have postponed buying a new home or investment property.
- 11% of prospective property buyers have postponed starting a family.
- 19% of those aged 55+ have postponed their retirement plans.
“These findings are worrying, but unfortunately not surprising,” said Mr Waldron. “We know that Australians' borrowing power has reduced by as much as 30% since the RBA first started raising the cash rate in May 2022.
“Every day our brokers are meeting with worried borrowers – in particular those facing the end of their fixed term rates and potential increases of more than $1,000 per month in their mortgage repayments.
“Your mortgage broker can help you plan for your next life stage and show you how your home loan can work around these changes in the economy. As the cost of living rises, it’s easy to feel like you don’t have options, but a broker can model different loan scenarios so you can make informed choices,” said Mr Waldron.
