‘Prepare for 9 per cent home loan rates’ – Mortgage brokers warn - realestate.com.au

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‘Prepare for 9 per cent home loan rates’ – Mortgage brokers warn - realestate.com.au
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‘Captive’ borrowers should be prepared for an average variable home loan rate of close to 9 per cent, mortgage brokers have warned

Mortgage holders may be forced to sell if they can’t refinance to a lower rate. Picture: Gaye Gerard.

Mr White said while a 3 per cent buffer made sense when interest rates were at record lows and thus likely to rise significantly, a smaller buffer was more appropriate in the current environment.“A buffer of 1.5 to 2 per cent is far more appropriate today and in the near future.” “More borrowers are becoming ‘mortgage prisoners’, locked into a situation where they can’t access a better deal because they don’t meet the inflated assessment rate.”

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