Mortgage refinance rejection spike exposes number of Australians in debt distress – Politics – ABC News (Australian Broadcasting Corporation)

Mortgage prisoners

Mr North has calculated there are now close to 1 million Australians on the edge of mortgage stress — defined by Digital Finance Analytics as borrowers who are going further into debt or eating into savings because their expenses are greater than their income.

Given that, it’s understandable that when the big four banks advertise discounted mortgage rates, financially stressed-out households flock to the banks to bag a better deal.

“And then they’re stuck, because suddenly they find that that wonderfully alluring low rate that’s being hung out to them is inaccessible,” Mr North said.

He calls these borrowers “mortgage prisoners” because they go home empty-handed, trapped in a financial squeeze.

via Mortgage refinance rejection spike exposes number of Australians in debt distress – Politics – ABC News (Australian Broadcasting Corporation)