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About 5% of borrowers facing cash flow shortfall Reserve Bank of Australia (RBA) governor Michele Bullock has described higher interest rates as a necessary evil, while acknowledging that it has left some borrowers in a vulnerable position. Governor Bullock said higher rates were necessary to slow the economy and thereby defeat inflation, because “inflation causes hardship ... particularly for the more vulnerable in our community.” However, she also said those with mortgages were “feeling the squeeze”. “For owner-occupiers with variable-rate loans (which is a subset of all borrowers), we estimate that around 5% are in a particularly challenging situation, where the combined total of their essential spending and scheduled mortgage repayments is more than their income – that is, they have a cash flow shortfall (see graph),” she said. “Although this group is fairly small overall, those in it have had to make quite painful adjustments to avoid falling behind on their mortgage repayments. This includes things like cutting back on their spending to the more essential items, trading down to lower quality goods and services, dipping into their savings or working extra hours.” #property #realestate #homeloans #therentalspecialists

About 5% of borrowers facing cash flow shortfall 🤕💰 Reserve Bank of Australia (RBA) governor Michele Bullock has described higher interest rates as a necessary evil, while acknowledging that it has left some borrowers in a vulnerable position. Governor Bullock said higher rates were necessary to slow the economy and thereby defeat inflation, because “inflation causes hardship ... particularly for the more vulnerable in our community.” However, she also said those with mortgages were “feeling the squeeze”. “For owner-occupiers with variable-rate loans (which is a subset of all borrowers), we estimate that around 5% are in a particularly challenging situation, where the combined total of their essential spending and scheduled mortgage repayments is more than their income – that is, they have a cash flow shortfall (see graph),” she said. “Although this group is fairly small overall, those in it have had to make quite painful adjustments to avoid falling behind on their mortgage repayments. This includes things like cutting back on their spending to the more essential items, trading down to lower quality goods and services, dipping into their savings or working extra hours.” #property #realestate #cashflow #interestrates #realestateaccountants #economy

 About 5% of borrowers facing cash flow shortfall Reserve Bank of Australia (RBA) governor Michele Bullock has described higher interest rates as a necessary evil, while acknowledging that it has left some borrowers in a vulnerable position. Governor Bullock said higher rates were necessary to slow the economy and thereby defeat inflation, because “inflation causes hardship ... particularly for the more vulnerable in our community.” However, she also said those with mortgages were “feeling the squeeze”. “For owner-occupiers with variable-rate loans (which is a subset of all borrowers), we estimate that around 5% are in a particularly challenging situation, where the combined total of their essential spending and scheduled mortgage repayments is more than their income – that is, they have a cash flow shortfall (see graph),” she said. “Although this group is fairly small overall, those in it have had to make quite painful adjustments to avoid falling behind on their mortgage repayments. This includes things like cutting back on their spending to the more essential items, trading down to lower quality goods and services, dipping into their savings or working extra hours.” #property #realestate #homeloans

About 5% of borrowers facing cash flow shortfall Reserve Bank of Australia (RBA) governor Michele Bullock has described higher interest rates as a necessary evil, while acknowledging that it has left some borrowers in a vulnerable position. Governor Bullock said higher rates were necessary to slow the economy and thereby defeat inflation, because “inflation causes hardship ... particularly for the more vulnerable in our community.” However, she also said those with mortgages were “feeling the squeeze”. “For owner-occupiers with variable-rate loans (which is a subset of all borrowers), we estimate that around 5% are in a particularly challenging situation, where the combined total of their essential spending and scheduled mortgage repayments is more than their income – that is, they have a cash flow shortfall (see graph),” she said. “Although this group is fairly small overall, those in it have had to make quite painful adjustments to avoid falling behind on their mortgage repayments. This includes things like cutting back on their spending to the more essential items, trading down to lower quality goods and services, dipping into their savings or working extra hours.” #property #realestate #homeloans

About 5% of borrowers facing cash flow shortfall Reserve Bank of Australia (RBA) governor Michele Bullock has described higher interest rates as a necessary evil, while acknowledging that it has left some borrowers in a vulnerable position. Governor Bullock said higher rates were necessary to slow the economy and thereby defeat inflation, because “inflation causes hardship ... particularly for the more vulnerable in our community.” However, she also said those with mortgages were “feeling the squeeze”. “For owner-occupiers with variable-rate loans (which is a subset of all borrowers), we estimate that around 5% are in a particularly challenging situation, where the combined total of their essential spending and scheduled mortgage repayments is more than their income – that is, they have a cash flow shortfall (see graph),” she said. “Although this group is fairly small overall, those in it have had to make quite painful adjustments to avoid falling behind on their mortgage repayments. This includes things like cutting back on their spending to the more essential items, trading down to lower quality goods and services, dipping into their savings or working extra hours.” #property #realestate #homeloans

About 5% of borrowers facing cash flow shortfall Reserve Bank of Australia (RBA) governor Michele Bullock has described higher interest rates as a necessary evil, while acknowledging that it has left some borrowers in a vulnerable position. Governor Bullock said higher rates were necessary to slow the economy and thereby defeat inflation, because “inflation causes hardship ... particularly for the more vulnerable in our community.” However, she also said those with mortgages were “feeling the squeeze”. “For owner-occupiers with variable-rate loans (which is a subset of all borrowers), we estimate that around 5% are in a particularly challenging situation, where the combined total of their essential spending and scheduled mortgage repayments is more than their income – that is, they have a cash flow shortfall (see graph),” she said. “Although this group is fairly small overall, those in it have had to make quite painful adjustments to avoid falling behind on their mortgage repayments. This includes things like cutting back on their spending to the more essential items, trading down to lower quality goods and services, dipping into their savings or working extra hours.” #property #realestate #homeloans #therentalspecialists

Reserve Bank of Australia (RBA) governor Michele Bullock has described higher interest rates as a necessary evil, while acknowledging that it has left some borrowers in a vulnerable position. Governor Bullock said higher rates were necessary to slow the economy and thereby defeat inflation, because “inflation causes hardship ... particularly for the more vulnerable in our community.” However, she also said those with mortgages were “feeling the squeeze”. “For owner-occupiers with variable-rate loans (which is a subset of all borrowers), we estimate that around 5% are in a particularly challenging situation, where the combined total of their essential spending and scheduled mortgage repayments is more than their income – that is, they have a cash flow shortfall (see graph),” she said. “Although this group is fairly small overall, those in it have had to make quite painful adjustments to avoid falling behind on their mortgage repayments. This includes things like cutting back on their spending to the more essential items, trading down to lower quality goods and services, dipping into their savings or working extra hours.” #evokecapital #financebroker #mortgagebroker #mattspears #finance #lending #property #realestate #mortgage #australia

About 5% of borrowers facing cash flow shortfall. Reserve Bank of Australia (RBA) governor Michele Bullock has described higher interest rates as a necessary evil, while acknowledging that it has left some borrowers in a vulnerable position. Governor Bullock said higher rates were necessary to slow the economy and thereby defeat inflation, because “inflation causes hardship ... particularly for the more vulnerable in our community.” However, she also said those with mortgages were “feeling the squeeze”. “For owner-occupiers with variable-rate loans (which is a subset of all borrowers), we estimate that around 5% are in a particularly challenging situation, where the combined total of their essential spending and scheduled mortgage repayments is more than their income – that is, they have a cash flow shortfall (see graph),” she said. “Although this group is fairly small overall, those in it have had to make quite painful adjustments to avoid falling behind on their mortgage repayments. This includes things like cutting back on their spending to the more essential items, trading down to lower quality goods and services, dipping into their savings or working extra hours.” #homeloans #RBA #property

About 5% of #borrowers facing cash flow shortfall Reserve Bank of Australia governor Michele Bullock has described higher interest rates as a necessary evil, while acknowledging that it has left some borrowers in a vulnerable position. Governor Bullock said higher rates were necessary to slow the economy and thereby defeat inflation, because “inflation causes hardship ... particularly for the more vulnerable in our community.” However, she also said those with #mortgages were “feeling the squeeze”. “For owner-occupiers with variable-rate loans (which is a subset of all borrowers), we estimate that around 5% are in a particularly challenging situation, where the combined total of their essential spending and scheduled mortgage repayments is more than their income – that is, they have a cash flow shortfall (see graph),” she said. “Although this group is fairly small overall, those in it have had to make quite painful adjustments to avoid falling behind on their mortgage repayments. This includes things like cutting back on their spending to the more essential items, trading down to lower quality goods and services, dipping into their savings or working extra hours.” #property #realestate #homeloans

5% of Borrowers Struggling to Make Ends Meet Amid Rising Rates 💸🏡 Reserve Bank of Australia Governor Michele Bullock has acknowledged that higher interest rates are squeezing some mortgage holders. While necessary to combat inflation, it has left 5% of owner-occupiers with variable-rate loans in a difficult position, where their essential expenses and mortgage repayments exceed their income. 📉😔 These borrowers are being forced to cut back on spending, downgrade goods, dip into savings, or work extra hours just to keep up. While it's a small portion overall, the impact is real and painful for those affected. 😥 #Property #RealEstate #HomeLoans #MortgageStress #Economy #RBA