Interest rates: Yellow Brick Road executive chairman Mark Bouris gives five Australian mortgage payers $12,000
Struggling homeowners are poised to get the cash injection they deserve thanks to a leading financial expert who is opening his wallet in an effort to ease the burden of rising interest rates.
On Tuesday, the number of consecutive rate hikes by the Reserve Bank of Australia (RBA) reached double digits, pushing the spot rate to a whopping 3.6 percent.
The 25 basis point increase comes as tens of thousands of Australians face the fixed-rate mortgage cliff, with many soon to pay up to $1,000 more in monthly repayments.
And with the cost of living rising, there’s no doubt that thousands of family budgets are coming under strain, forcing many to make sacrifices to keep a roof over their heads.
But the days of replacing fresh produce with frozen vegetables or cutting back on kids’ extracurricular activities could soon be over for five mortgage holders thanks to home loan guru Mark Bouris.
The Executive Chairman of Yellow Brick Road (YBR) is calling on mortgage holders to share their stories of desperation and resilience to understand how the latest rate hike is affecting their budgets.
In return, five homeowners will be randomly selected to receive a share of Mr. Bouris’ $60,000 “fair go” giveaway, to “relieve the pressure of rapidly rising interest rates.”
“I know many Australians are struggling right now. Homeowners are facing sky-high mortgage payments through no fault of their own,” said Bouris.
“We want to hear from you… your story, your struggles, and especially if you’re concerned about your ability to meet your mortgage payments.”
While the five mortgage holders will each receive $12,000, those not selected in the drawing will still have the option of receiving support from a YBR mortgage broker who will suggest ways homeowners can improve their mortgage situation.
The latest rate hike could allow the average mortgage payer to cough up an additional $1,200 to $1,500 per month, which Bouris says is a lot of money given that wages aren’t rising.
“Nobody makes extra money, so that impact is huge mentally,” he told the Today show on Wednesday.
He also notices that more people rent out guest rooms, have a second job or ask their employer for overtime to earn the extra income.
Meanwhile, other Australians have been paying more attention to managing their spending so they don’t blow their budgets.
“Around the world we have the best reputation … we will do everything we can, pump gas, do what we can to make sure we keep paying our mortgages,” Mr Bouris said.
In some better news, the financial expert said struggling homebuyers can expect some relief after RBA Governor Philip Lowe alluded to a pause in rate hikes in his latest speech.
However, having analyzed Mr Lowe’s very careful speech, Mr Bouris believes further rate hikes will follow in the coming months.
“The words from (Mr. Lowe) were ‘we’re committed to getting back to two to three percent inflation,’ which is a crazy number,” Mr. Bouris explained, given that the current inflation rate is seven percent.
“So what’s his choice?”
Mr Bouris hopes by asking homeowners to share their story of how the rate hikes are affecting them, the RBA will be able to understand the dire financial situations Australians find themselves in.
“The whole idea of (the ‘Fair Go’ giveaway) is to reward people who tell us their stories, but most of all to tell the Reserve Bank how Australians feel,” he said.
“Australians are feeling this and they’re struggling, so let’s tell the Reserve Bank how it is.”
Visit https://ybr.com.au/fairgo to share your story for a chance to win a share of Mr. Bouris worth $60,000.