Startling new research has shown that while many Australian borrowers are struggling under the pressure of steep interest rate rises, others are taking advantage of the rate increases to invest in property.

The ‘Consumer Access to Mortgages 2023 report’ by Agile Market Intelligence in association with the Finance Brokers Association of Australia (FBAA) adds more weight to recent claims that Australia’s middle class is diminishing.

It found that borrowers who secured their mortgage in the last 12 months were more likely to have secured the mortgage for refinance or a property investment purchase compared to those who secured their mortgage outside the last 12 months.

FBAA managing director Peter White AM said the figures confirm that the gap between the ‘haves and have nots’ is widening.

“We are seeing people struggling under rate pressure and at the same time those with assets and means taking advantage of the market and investing.”

The report found that refinancing climbed from an average of 14 per cent to 20 per cent over the past twelve months, while owner-occupier mortgages, which had averaged 47 per cent, dropped to 41 per cent.

However while many refinanced to relieve mortgage stress, a large group of borrowers – 32 per cent – purchased an investment property over the past 12 months, an increase from an average of 29 per cent.

A further one in five Australians are actively looking to invest in property over the next 12 months.

Mr White said that in this volatile market “there is no one size fits all” solution for borrowers, and that “every day, finance brokers are helping each person create a path forward that is in their best interests according to their individual circumstances.”

His advice to borrowers is to “block out the wider noise and ask yourself what is best for you at this time.

“For example if your bank tells you that refinancing is impossible, don’t accept that until you explore all of the options, which a broker can give you.

“Conversely if you have equity in your home or can access enough for a deposit, then an investment property may be a good option for you now.”