Anyone under genuine mortgage stress should know (as the Little River Band song goes) “help is on in its way” with the corporate regulator, ASIC, warning lenders to look after borrowers in trouble because of the 12 rate rises since May last year.

This good news that lenders have to try to help debt-stressed customers comes as the monthly inflation number came in much better than expected yesterday, which should keep the RBA away from more rate hikes in the near future.

In simple terms, consumer prices rose by 0.3% in July on a seasonally adjusted basis. The annual rate dipped to 4.9% from 5.4%. Economists expected a rise of 5.2%, so this is a big win for the RBA’s fight against inflation and therefore for those worried about future rate rises.

This is what CommSec’s Ryan Felsman reported: “Following the release of the CPI report, money markets moved to price in a 99.5% probability that the Reserve Bank would pause its rate hikes for a third straight month in September. Traders also pared back the chance of one last hike by the end of the year to just 35%, signalling that policymakers appear largely done with tightening.”

Of course, Ryan could be jumping the gun with those beautiful words for interest rate sufferers that the RBA might be “…done with tightening.” However, the money market is saying no rate rise in September and possibly no more this year!

For months I’ve been arguing that inflation would come off the boil, as the mortgage cliff claims more borrowers who have to go from low fixed rate home loans to high variable rate loans. And that looks like that’s happening. By the way, it should be, especially after 12 rate rises in just about a year!

Meanwhile, ASIC knows that the real stress on borrowers will rise in coming months as the mortgage cliff process claims more victims, so this warning to lenders is well-timed.

How do we know about this? Well, the AFR’s Ronald Mizen quotes ASIC, which is getting out the message that “...there was growing evidence of borrowers experiencing distress and difficulty due to cost-of-living pressures, including a 28 per cent jump in calls to the National Debt Hotline this year.”

Also, delinquencies and hardship application volumes were also rising, “although from relatively low levels”.

The regulator has set out dozens of obligations that lenders have to attend to for customers with debt repayment problems. And most are obligated to vary a consumer’s credit contract if a consumer notified them that they were unable to meet their obligations.

To understand the pressure that some borrowers are under, Rate City says someone with a $500,000 loan could face a rise in repayments of $1,134 a month because of the mortgage cliff. A million-dollar borrower has to find $2,269 a month!