Financial downsizing, however, is defined as moving from a larger to a smaller dwelling of lesser value - whether that be as a homeowner or tenant - to save on ongoing household expenses.
To comfortably absorb the recent interest rate hikes a household would need to be earning a minimum income of $180,000 – significantly more than the average salary. Picture: Supplied Comparison site Finder recently revealed that 13 per cent of Australians they surveyed have been forced to find a more affordable property as they feel the pinch of inflation. Picture: Supplied
While downsizing a home, and subsequently a mortgage, might seem like the logical step for homeowners with tight budgets, Mr Whitten said the costs of moving can often be counterproductive.For an average Aussie with a $500,000 home loan, repayments have jumped by about $900 a month since April last year when interest rates starting climbing sharply. Picture: Supplied