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The majority of Australian mortgage holders are prepared for future rate rises and will be able to accommodate increases in borrowing costs in 2011, a new survey has reported.
QBE LMI’s Mortgage Opinion Survey, which surveyed over 1000 mortgage industry professionals including brokers and banks, showed that over 80 per cent of professionals believe mortgage holders are well prepared for further rate rises.
Over 34 per cent said mortgage holders would be able to accommodate rate rises ranging from 0.5 to 1.0 per cent while over 11 per cent said a rise of between 1.0 and 1.5 per cent would be manageable.
“Interest rate rises are expected this year as identified by our survey results,” Ian Graham, CEO of QBE LMI said.
“The majority of respondents, over 49 per cent, anticipate rates to rise between 0.25 – 0.5 per cent during 2011, while 34 per cent feel the increase will be even higher ranging from 0.5 – 1.5 per cent.”
According to Mr Graham, the survey shows Australian borrowers are taking a more cautious approach to borrowing. “Our survey results indicate that mortgage holders have become more cautious about borrowing and are being fairly careful with their finances to prepare for expected future interest rate rises.”