Half of mortgage holders will take a hit of hundreds of dollars when they need to refix their interest rates within the next 12 months.
 
This will heap financial pressure on homeowners at a time when house prices are also steadily declining.
 
Amid all this, business confidence is also on the slide and bosses are starting to pull back on hiring new staff.
 
So much will this mortgage shock hurt? Will renters end up being hit the hardest? And when can we expect things to start turning around?

Today, Westpac senior economist Satish Rancchod crunches the numbers on the big economic squeeze heading our way.  

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