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Source: ABC — 

Interest rates are already rising in many countries and are almost certain to rise in Australia sometime this year. But how prepared are heavily indebted households, especially those who just paid top dollar for a home in the past couple of years?

Up to October last year, the Reserve Bank maintained a pandemic mantra that its “central scenario” was for rates not to start rising until 2024.

That’s when Eliot Hastie and his partner bought a flat in the inner-Sydney suburb of Surry Hills.

“So, in October last year we weren’t really looking,” he says, before explaining that the Delta lockdown meant they weren’t spending as much as usual, had built up a deposit and a flat they liked came up for sale.