Tens of thousands of Australian homeowners are currently facing a critical risk of mortgage default as new data predicts a fresh surge in interest rates within the coming days.

The Reserve Bank of Australia (RBA) is expected to meet shortly, with a consensus among economists for a 0.25% hike, potentially pushing the cash rate to 4.35%. 

his move comes as a direct response to persistent inflationary pressures that continue to strain the national economy.

In a significant development, economists warn that further increases throughout the year are not off the table.

According to a recent survey by the "Finder" platform, approximately 3% of borrowers—equivalent to 100,000 people—confessed they could only survive one more rate hike before falling behind on their repayments. 

This highlights a growing fragility in household finances across the country.

Furthermore, the data reveals an even more alarming trend: nearly one in ten borrowers (about 297,000 Australians) may default if interest rates are raised twice more. 

An additional 9% of homeowners stated that a third consecutive hike would be the final blow to their financial stability. These figures underscore the precarious "tipping point" many families have reached in the current economic climate.

Meanwhile, 75% of market experts anticipate a rate hike during the upcoming board meeting, fueled by the latest inflation figures. 

The Consumer Price Index (CPI) rose by 4.6% in the 12 months leading to March, a sharp jump from February’s 3.7%.

While slightly lower than some extreme forecasts, this figure remains significantly above the RBA’s target range of 2% to 3%, marking a three-year peak in inflationary pressure.

Consequently, financial experts are urging borrowers to take immediate and proactive steps to avoid financial collapse.

It is highly recommended that homeowners facing difficulties contact their lenders as early as possible to discuss "hardship" provisions. 

Additionally, borrowers should explore refinancing options or negotiate for lower interest rates with their current banks to mitigate the rising monthly burden.

As the RBA decision approaches, the focus remains on whether the central bank will prioritize cooling inflation over the immediate financial survival of thousands of homeowners.

Experts advise that staying informed and seeking early financial counseling may be the only way for many Australians to weather the upcoming economic storm.