Interest rate hikes may send about 200,000 more households into mortgage stress, says analyst

Households struggling with loan repayments are looking at a deep hole - incomes are not rising but costs are'

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Many homeowners may be forced to tighten their belts after the Reserve Bank of Australia lifted the cash rate by half a percentage point, sending an estimated 200,000 households into mortgage stress.

On Tuesday, the RBA raised the official cash rate 50 basis points to 1.35% - the highest since May 2019.

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