Property Finance Uncut: RBA’s shock rate hike gives mortgage holders whiplash

With the Reserve Bank (RBA) delivering a shock rate decision for May, mortgage holders are left reeling on what steps to take to minimise the impact on their finances. So in this episode, Smart Property Investments’ Phil Tarrant and Finni Mortgages’ chief executive, Paul Glossop, talk about the central bank’s surprising move to resume rate hikes after a month-long pause to check the economy’s pulse and unpack the data points that influenced the latest decision. And while the duo acknowledged the latest cash rate increase will be the “nail in the coffin” for some borrowers due to higher repayments, they encouraged mortgage holders to reassess their current strategy and create a plan that can help them weather the latest rate hike storm. They also unpack the various options available to borrowers, which include mortgage restructuring, refinancing to a fixed or variable rate, or switching to a different lender that offers a more competitive product.