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A Roy Morgan poll has found mortgage stress at its lowest in three years but that is about to change in a big way if rates go up on Tuesday as analysts predict they will. And then again in March. This week’s sharp tick up in inflation is certainly keeping borrowers on edge.

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00:00Following a year of record sales and rate hikes, there has been a slight reprieve in recent
00:06months with mortgage stress dropping to a three-year low. Yet a quarter of Aussies are
00:11still feeling the pinch.
00:1224.5% of households with mortgages are actually living at risk of mortgage stress.
00:19And it's younger people who are struggling the most to make ends meet.
00:23I have friends who have bought homes when interest rates were really low and moving
00:26back in with parents and they now have young families, so yeah, definitely, definitely.
00:29Experts forecast a rate rise on Tuesday, so some hopeful buyers are making their move
00:34now.
00:35The properties are selling really, really quickly, so even when you see a property, it's gone
00:40the following week.
00:41Roy Morgan predicts with two possible rate hikes of just half a percent each in February and
00:46March, 1.3 million Aussies will find it hard to pay their mortgage. That's nearly 30% of
00:53homeowners using one-third of their income to make repayments.
00:57This interest rate rise that's coming, or potentially a few, over the next 12 months, we'll definitely
01:02see people reconsidering what their plans are.
01:04And with a lack of supply, the dream of owning a home could be getting even further out of
01:09reach. With KPMG forecasting Brisbane house prices could soar almost 11% this year.
01:15I don't have a partner, so it makes it really, really difficult for single people to try and
01:20get into the housing market because we don't have the help.
01:24While we wait to see what Tuesday's rate decision is, the word of advice is caution.
01:29Really consider your own circumstances, and consider whether you expect that you'll be better
01:35in the future.
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