Mortgage rate rises biting

Budgeting agencies say more people are feeling the pinch of rising mortgage rates and fuel prices. There is concern inflationary pressures will force the Reserve Bank to again raise the Official Cash Rate next week. Raewyn Fox, CEO of the Federation of Family Budgeting Services says although the agency has not yet seen a large number of people losing their homes, many are worried it could be a possibility. She says people who do not own their own homes are also worried that rents will rise.

Ms Fox says homeowners whose mortgages are up for review are doing complete overhauls of their finances to see how they can meet the increase in payments from higher interest rates.

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