The Quicky Could The Next Rate Rise Trap You In Mortgage Prison?
With another rate rise looking likely next week, there is a cohort of Australian home owners who have found themselves in a bit of a tricky situation.
Some, looking to refinance and get a better deal than the higher rate they're on, aren't able to get any financial institution to help them because they no longer meet the documentation requirements when their mortgage repayments are taking up more of their household income, or their house is now worth less than their loan.
This situation is known as a mortgage prison, when you can't afford the rate rise increases on your current mortgage but you also can't move to another option in order to make it more affordable.
In this episode, The Quicky team finds out how mortgage prisons work and what it takes to break free from one.
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CREDITS
Host: Claire Murphy
With thanks to:
Dr Shane Oliver - Head of Investment Strategy and Chief Economist at AMP Capital
Parts of this episode were performed by voice actors
Producer: Claire Murphy
Executive Producer: Liv Proud
Audio Producer: Thom Lion
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