HAT IF? Annette Sampson
THE FIXED RATE CLIFF
There has been a lot of talk lately about the so-called fixed rate mortgage cliff. This refers to the fact that the Reserve Bank has estimated around 800,000 fixed rate home loans are due to expire in 2023. Collectively these loans are worth around $350 billion and borrowers refinancing will face a sharp jump in interest rates.
Many of these loans were taken out during the Covid pandemic when canny borrowers could lock in a fixed rate loan at a rate of less than 2%. After the March lift in official interest
