1 year ago
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Interest rate hikes since May 2022 have left many pandemic-era borrowers unable to meet repayments under current conditions
Australia’s banking regulator says it could adjust affordability buffers for mortgage holders if economic conditions shift, as a growing number of pandemic-era homebuyers find themselves locked in an uncompetitive rate and unable to refinance.
Any change in the serviceability buffer, which is used by lenders to help determine an applicant’s borrowing capacity, could free up a cohort known as “mortgage prisoners” who no longer meet lenders’ standards after a string of rate rises.
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