As Australia’s only finance guru who knows what it’s like to be broke and unable to save more than $500 at any given time, this year’s upcoming fixed rate mortgage cliff is going to hurt like Hemorrhoids.

Soon more than $400b worth of fixed rate home loans are going to expire, meaning for all those hundreds of thousands of Aussies who have been enjoying fixed rates of 2%, they’re now forced to choose whether to refinance to a new fixed rate of some 5% or let fate take control and roll onto an unknown variable rate that may be subject to further rate increases yet.


But not all Aussies even have the option to refinance. Their Loan To Value Ratio has risen so much over the last 12 months of rate hikes and house value drops that they’re going to be stuck on whatever crazy variable rate their bank lets them attempt to service.

Double Joy.

In other words, most mortgagees including myself find themselves in a highly uncomfortable situation that is eerily similar to having Hemorrhoids of the buttocks.

With this terribly impossible and messed up decision ahead for us all, it’s now time to choose. Do you refinance your mortgage or just stick your head in the microwave and press start?

Either way life is going to get trickier. As the financial pressure increases like the development of Hemorrhoids pushing against the lower rectum, you won’t be able to sit on this decision for long. You need to choose now.

Refinance to more than double the fixed interest rate and become deeply burdened by unaffordable repayments? Or shove your face into the microwave, reach around for the buttons and try to press start?

What’s the point of only living to work more to keep your head above financial flood waters? Never going out or having fun or partaking in any discretionary spending of any kind?

That’s not a life, that’s a mortgage prison. It traps you, bottles you up in box of discomfort where if you push too hard you’ll hurt yourself.

Like Hemorrhoids do.

Isn’t it easier to walk over to the microwave, put your head and as much of your upper body in there as you can and just press start?

I’m sure the RBA will tell us the right option soon enough.


Please enter your comment!
Please enter your name here