Rising Interest Rates Pose Challenges for Property Owners with Fixed-Rate Mortgages

“The big challenge is that the majority of mortgages – an estimated 70 to 80 percent – are fixed-rate mortgages,” Brundia told cash.ch. Fixed-rate mortgages, which previously charged around 1 percent interest, now cost twice or three times as much to renew. “Many property owners have gotten used to the low financing costs and find it difficult to think of having to pay much more now.” At the same time, “everything” has become more expensive due to inflation.