Australians are at risk of becoming 'mortgage prisoners' as they are becoming stuck with their current loans and unable to refinance them.
Many Australians are being advised to switch banks or look for a better deal on home loans to avoid interest rate rises.
But founding principal of Digital Finance Analytics (DFA), Martin North, has said that 40 per cent of people who have tried to refinance their loans have been unsuccessful.
Just a year ago, only 5 per cent of people were unable to do so, news.com.au reported.
Australians are at risk of becoming 'mortgage prisoners', as they are becoming stuck in their mortgage and won't be able to refinance their loans (stock image)
Data from DFA and investment bank UBS has found the sudden increase in the number of failed mortgage refinancing applications.
This is happening because the bar has become a lot higher to get a home loan, and while applicants may have cleared the bar the first time, it may not