Free Debt Assistance Quick, Confidential and No Obligation.

Enquire Online Now OR Request a Callback

Rates doubt fuels home loss fears

14 January 2007, Jim Dickins, The Sunday Telegraph

THIS year is shaping up as one to fear for homebuyers according to a flood of new polling on household finances.

Amid renewed uncertainty about interest rates last week, a series of surveys confirmed Australians are feeling less financially secure.

More than a quarter of those polled by mortgage broker Artog.com.au said they could not afford their home loan if rates increased by one per cent.

While such a large increase remains highly unlikely, analysts now believe another 0.25 per cent increase is a firmer possibility after news last week of a booming jobs market.

Figures showed healthy economic growth is generating thousands of new jobs, pressuring the Reserve Bank to raise rates in a bid to keep inflation low.

Artog general manager Kevin Sherman said his survey results indicated the need for caution from the bank before making any move.

``I wouldn't say it's alarming but it is interesting to see how many people are feeling the pinch,'' he said.

``One per cent is not that much. I suppose the message is people really should be shopping around for the best rate.''

Separate research conducted by Newspoll for Fox Symes shows a 40 per cent increase in the number of people worried about mortgage-related debt in the past three months.

Falling deeper into debt now ranks at number seven on Newspoll's list of top 10 worries, behind getting sick and losing the family home to a natural disaster.

Fox Symes spokeswoman Deborah Southon said increased financial worries closely tracked interest rate rises.

``Obviously, the increase in concern can be linked to the recent interest rate rise but it's significant that after the Christmas shopping period debt concerns are plaguing consumers,'' she said.

``The survey also revealed an increase in the number of people who report worrying about falling behind on their mortgage payments and subsequently losing their homes.''

In further bad news, bankruptcies are expected to rise this year, according to forecasts issued by Australian Financial Security Authority.

In NSW, they are tipped to jump 30 per cent to 2244.

On the bright side, however, strong jobs growth should ease any fears about redundancy and unemployment. The Artog survey also shows most Australians still retain the dream of owning their own home, even if it is becoming harder. Almost two-thirds of non-homeowners polled said they planned to take out a mortgage one day.

Almost half said they were just waiting for the right time.

Back to Latest News

Enquire Now – Just 4 questions to answer

  1. 1 Do you have a home loan? We can still assist even if you do not have a home loan.
  2. 2 Do you have unsecured debts of $7,000 or greater? Credit cards, store cards and personal loans are types of unsecured debts. Mortgages and car loans are not.
  3. 3 Do you receive a regular income?
  4. 4 Have you been bankrupt in the last 13 years?
Next

Yes! We can help you

Option 1: Call us now

Free Call 24 hours, 7 days a week

1300 098 127

Fox Symes is the largest provider of debt solutions to individuals and businesses in Australia. We help over 100,000 Australians each year resolve their debt and take financial control.

Option 2: We call you

Unfortunately, we are unable to assist you.

For further assistance we recommend you:

  • Speak to your Creditors
  • Call AFSA on 1300 364 795
  • Speak with a Financial Counsellor
< Go Back

Unfortunately, we are unable to assist you at this time.

Please contact us for assistance once you have secured a regular income.

We look forward to your call.

< Go Back

Unfortunately, we are unable to assist you.

You need to have over $7,000 in unsecured debt to apply.
For further assistance we recommend you:

  • Speak to your Creditors
  • Call AFSA on 1300 364 795
  • Speak with a Financial Counsellor
< Go Back

FREE Phone Consultation

Australian residents only.

  1. Credit cards, store cards and personal loans are types of unsecured debts. Mortgages and car loans are not.
Enquire Online Call Now

Take control
of your debt today

Call Now 1300 784 182

Or We'll Call You

No thanks, my debt situation is not urgent.

FREE Phone Consultation

Australian residents only

FREE Phone Consultation

Australian residents only.

  1. Credit cards, store cards and personal loans are types of unsecured debts. Mortgages and car loans are not.