Rate rise concerns run second

Interest rates are no longer top of the agenda for most Australian mortgage holders, according to new research released by Mortgage Choice.

In a turnaround from 2009, the Mortgage Choice consumer sentiment survey found that interest rates had slipped to second in the list of worries for Australians, with most concern now being about utility bills and other cost of living factors.

Notwithstanding interest rates being of less concern than utility bills, the same survey revealed that around 4 per cent of those surveyed believed they might have to sell their home if rates rose beyond a further 0.25 per cent.

It noted, however, that around 20 per cent of respondents said they could afford rate rises of over five per centage points.

Commenting on the survey data, Mortgage Choice senior corporate affairs manger Kristy Sheppard noted that it had been collected ahead of the Reserve Bank’s November rate rise and the higher rises imposed by the banks.

Among the findings of the survey were that 60 per cent of those buying property in the next two years were making some kind of sacrifice in order to do so; 16 per cent said they would buy shares instead of property; and 59 per cent believe the global financial crisis had made property seem safer than investing in shares.