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Australia rate rises deepen mortgage strain as home sales slow
Australia’s housing slowdown is putting growing pressure on homeowners, with some unable to sell, facing losses or struggling to keep up with mortgage repayments. Property commentator Tom Panos said an auctioneer reported that six of 10 vendors at weekend auctions had broken down in tears; he warned another rate rise could deepen household distress and increase recession risks.
The Reserve Bank’s fifth rate rise this year is expected to add about A$584 a month, or nearly A$7,000 a year, to repayments on a typical home loan. The article says some families are cutting holidays, reconsidering private schooling or taking second jobs, while fewer property sales are affecting businesses and state stamp duty revenue. Treasurer Jim Chalmers said the rise would be difficult for families and businesses to absorb.
In short
- Australia’s fifth rate rise is adding pressure to mortgage holders.
- Some homeowners are struggling to sell or meet repayments.
- Falling property sales are affecting businesses and government revenue.
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Originally published by Daily Mail as “The brutal reality of Australia’s interest rate nightmare: Sellers break down in tears as property prices plunge and desperate families ditch private schools to pay the mortgage – with warnings the worst is yet to come”.