D-day approaches nearly one million Australian mortgage holders: experts warn that changes in mortgage loans will make many borrowers unable to pay the payments
- Some interests, only mortgage loans expire in January, which adds $ 400 to payments
- Graham Cooke said that people chose interest only because it was attractive
- He said he took some pressure off the mortgage payment on the house.
Sahar Mourad for Daily Mail Australia
Australian homeowners have been warned of a "time bomb" that could leave them struggling to pay off their mortgages.
The analysis conducted on a comparison website found that 42 percent of people who obtained mortgage loans in 2014-2015 established interest-only repayments.
However, many of these attractive offers expire in January and the owners who took out the loans will be affected by an average of $ 400 per month more than what they are already paying.
Experts warn Australian homeowners that their loans can leave them on the street fighting
More than 900,000 of the new mortgage loans will expire in January, which will then shift interest payments only to principal and interest payments.
This is because your reimbursements will change from only interest to having to pay the principal.
According to finder.com.au, more than 900,000 Australian homeowners will be hit with additional charges from the beginning of next year, which will put great pressure on homes that are already stretched.
Graham Cooke, manager of Insights at finder.com.au, said: "For those who wanted to slightly reduce mortgage repayments and take away some pressure, it was an attractive product for borrowers.
& # 39; There is a certain proportion of people who made the decision for that reason. Some families will definitely have difficulties when the loans are reversed. "
An average of $ 400 will be added to the monthly payments on people's mortgages, said insights manager at finder.com.au Graham Cooke said families will "definitely have difficulties when loans are reversed"
In 2014, the Australian Prudential Regulation Authority (APRA) announced plans to strengthen strong residential mortgage lending practices, in particular a crackdown on mortgage loans of interest only issued by banks.
"Credit growth has moderated, standards have been raised and supervision has improved, however, the environment remains a greater risk and there are still some practices that should be further strengthened," said APRA President Wayne Byres.