Most mortgage holders could sell their homes at a profit to avoid defaulting but conversely, others would be at risk of a loss if property prices fell.
Central Bank Governor Michele Bullock expects headline inflation to drop into target on Wednesday, so why is she warning against near-term interest rate cuts?
The Reserve Bank of Australia held the cash rate steady at 4.35 per cent at its September meeting and kept all options open in its fight against inflation.
The Reserve Bank of Australia has left interest rates untouched at 4.35 per cent for the fifth consecutive meeting and remains 'vigilant' to inflation risks.
Mortgage holders have been granted another month of interest rate relief after the Reserve Bank of Australia left monetary policy unchanged, as expected.
More interest rate hikes are broadly off the table but the Reserve Bank governor is likely to keep her options open in a big week of public appearances.
The minutes from the December interest rate meeting will outline the Reserve Bank's thinking on inflation as households gear up for the festive season.
Mortgage-holders are in for more pain after Australia's central bank pulled the trigger on a widely-expected 25 basis point interest rate hike aimed at driving down stubbornly high inflation.
