Could The Next Rate Rise Trap You In Mortgage Prison?

With another rate rise looking likely next week, there is a cohort of Australian home owners who have found themselves in a bit of a tricky situation. Some, looking to refinance and get a better deal than the higher rate they're on, aren't able to get any financial institution to help them because they no longer meet the documentation requirements when their mortgage repayments are taking up more of their household income, or their house is now worth less than their loan. This situation is known as a mortgage prison, when you can't afford the rate rise increases on your current mortgage but you also can't move to another option in order to make it more affordable. In this episode, The Quicky team finds out how mortgage prisons work and what it takes to break free from one. Subscribe to Mamamia GET IN TOUCH Feedback? We’re listening! Call the pod phone on 02 8999 9386 or email us at [email protected] CONTACT US Got a topic you'd like us to cover? Send us an email at [email protected] CREDITS Host: Claire Murphy With thanks to: Dr Shane Oliver - Head of Investment Strategy and Chief Economist at AMP Capital Parts of this episode were performed by voice actors Producer: Claire Murphy Executive Producer: Liv Proud Audio Producer: Thom Lion Become a Mamamia subscriber: https://www.mamamia.com.au/subscribe See omnystudio.com/listener for privacy information.