High income earners may be most at risk as rates rise

Australian Property Monitors said middle to high income earners were more likely to be financial stretched and could soon find themselves struggling to meet their home loan repayments. APM said those with a mortgage between $400,000 and $1 million were most likely to suffer if interest rates increase, as is likely this year. Two interest rate rises of 0.25 percentage points would take the average variable home loan rate from 7.07 per cent to 7.57 per cent, adding $97 a month to a typical $300,000 loan.