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Most borrowers are worried about mortgage repayments as consecutive interest rate rises start to bite homeowner budgets.
Research by AMP Bank has revealed that 64 per cent of homeowners are worried about meeting their mortgage repayments as the Reserve Bank of Australia continues to increase interest rates to control surging inflation.
Interest rates currently sit at 2.60 per cent after the RBA drove the cash rate up by 0.25 per cent in the sixth consecutive hike this year.
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The cash rate increase is felt most acutely by younger Australians who purchased a home in the last 12 months, with 74 per cent aged under 44 feeling the bite.
In response to increases, 58 per cent said they've had to stretch their household budgets by cutting spending on items like food and clothing.
"We know it's a tough time for homeowners facing into higher interest rates," AMP Bank group executive Sean O'Malley said.
In addition to household budget cuts, close to half of homeowners are considering refinancing their home loans in the next 12 months.
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While nearly half of Australian homeowners said they want to refinance to get a better rate, they're also putting it off because of the complexity and time commitment.
Others aren't budging as they believe the financial benefits would be too small or they're not sure when the best time to refinance is since interest rates are constantly changing.
"For some, refinancing their home loan might help to save money and improve overall financial wellbeing," O'Malley said.
"Australians are increasingly time poor so understandably refinancing a mortgage is not going to be top of the priority list."
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Source: 9News
