Interest rate hikes starting to bite as fixed loans come to an end for thousands of West Australians

Interest rate hikes are continuing to bite in WA, with welfare agencies now seeing more in-trouble homeowners. Anglicare WA boss Mark Glasson said the number of people who could not afford their housing loan payments was on the rise. “We’re continuing to see an increase in employed people seeking help — emergency relief and food support and financial counselling,” Mr Glasson told The Sunday Times. “Our financial counsellors tell us they’re seeing more mortgage holders unable to afford their repayments in addition to the rising cost of living.” As revealed by The Sunday Times in February, startling Reserve Bank of Australia figures show more than half of West Australians on fixed-rate home loans will be paying thousands of dollars in extra mortgage payments by the end of this year as they are forced on to variable rate payments. Many on fixed-rate home loans are paying 2 per cent, but that will rise to about 6 per cent when they start paying the variable home loan rate. Mr Glasson said the May 11 State Budget should address “the crisis affecting West Australian families, in securing and maintaining housing”. “This issue requires an immediate response from Government — combined with a longer-term focus on addressing the systemic causes of our current housing situation,” he said. The December 2022 end-of-year financial figures showed a budget surplus of at least $1.8 billion. Mr Glasson said Mr McGowan needed to put the money to good use. He said the Premier should freeze fees and charges and provide a power bill credit for the most vulnerable. “I urge the Premier to invest the growing surplus to place a freeze on new fees and charges and provide a power credit for anyone on a Health Care Card,” Mr Glasson said. “I also encourage Mr McGowan to reinstate the Rental Relief Grant Scheme — we need to keep families — especially the most vulnerable – with a roof over their head, until the current housing crisis has eased. “