Once again, the central bankers have blown insane speculative housing bubbles. Once again, millions of “homeowners” will end up losing “their” houses to foreclosure. Once again, our captured political class will force taxpayers to bail out the banks that recklessly lent money to fools who couldn’t afford the houses they were signing up to buy. Once again, vulture funds like BlackRock and Vanguard will swoop in using trillions in FedBux funny money to buy up millions of distressed properties and rent them back to the increasingly pauperized middle and working classes. Wash, rinse, repeat.
RateCity’s Sally Tindall warns that millions of Aussies that locked in ultra low fixed mortgage rates during the pandemic face a massive rise in mortgage repayments when their loan terms expire:
“Borrowers’ fixed rate immunity will only last for so long. When the merry-go-round stops, it’s going to be a shock for many because their new rate will be significantly higher,” [Tindall] said…
The analysis, which covered the big four banks’ half-year results and APRA loan book data, shows about 38 per cent of home loans are currently fixed, in dollar terms, with the peak of people coming off their fixed rates around mid-to-late 2023.
Westpac has the highest proportion of fixed mortgages as 40 per cent, followed by CBA’s 38 per cent, NAB’ 37.4 per cent and ANZ’s 35 per cent.
On a 500,000 principle and interest loan fixed in July 2021 for two years at a rate of 1.94 per cent, the current payment is $2105 per month.
When the fixed rate ends in July 2023, the average revert rate is likely to be about 5.68 per cent, if forecasts for the cash rate are realised, sending monthly repayments to $3042 – an increase of $937 per month.