Homeowners switch to interest only as families roll debts into mortgages

Boss Money director and mortgage broker Tom Uhlich reveals families who are not yet distressed sellers are stretching credit card debt over 30 years just to survive. Brisbane families who are not yet distressed sellers are quietly stretching credit card debt over 30 years – and a mortgage broker’s client files show just how widespread the crisis has become. Boss Money director and mortgage broker Tom Uhlich, who has been in the industry for 22 years and worked through the GFC and Covid, said homeowners were under extreme money flow pressures in the current cost of living crisis. He said homeowners were switching to interest only mortgages just to survive and free up cash each month. Homeowners are under extreme money flow pressures with interest rate hikes and modest wage growth. Boss Money director and mortgage broker Tom Uhlich. “In 2008 it was investors asking for interest only,” Mr Uhlich said. “Now it’s owner occupier families asking how to get through the month. “More than half the refinances I’m writing in Brisbane are rolling card, car and tax debt into the mortgage. “These aren’t distressed sellers, they’re families who’ve run out of backup funds, and stretching a credit c...