“We commissioned research which found that mortgage holders in general, and not just Australian mortgage holders or lendi, probably one in three say they don’t understand how to protect themselves in the event of a rate hike. . It would probably be consistent with the findings of the FBAA, ”he said.
Research also found that up to 30% of mortgage holders didn’t even know what their current interest rate was, while 45% didn’t know how to structure a mortgage to protect against rising rates.
“This is definitely an area that people are increasingly focusing on, but there is clearly a lot for borrowers to understand,” he said. “That way, I think brokers have an important role to play in the next cycle, as the potential for those rate hikes could arise… whether that’s the fixed rate trend we’re starting to see today or potentially in the future, the variables start to disappear. up.
“Obviously, a lot of the market doesn’t know exactly how to best structure themselves, where they are now and what they should be doing if it comes to fruition. “
Fixed interest rates have increased at an alarming rate over the past two months, with the CBA recently increasing fixed rates for the third time in just six weeks. According to Canstar’s chief research and ideas officer, Mitch Watson, “the wave of fixed rate changes has turned into a wave.”