Households scrambling to keep up with rising repayments are refinancing at record levels.

One million borrowers have already transitioned from fixed to variable rates, and outgoing Reserve Bank of Australia (RBA) boss Philip Lowe predicts that a similar number will make the transition over the next 18 months.

This is increasing the number of mortgagees battling higher mortgage-to-valuation ratios on their home, according to non-bank lender Anthony Ferraro of Salvest Finance.  

“This change in valuation ratios will materially affect the way in which affected mortgage holders respond to rising rates, via either mortgage refinancing or selling their property,” he says. 

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