Some first home borrowers were not stress tested for interest rates as high as they are now.
The most indebted borrowers may not be able to keep paying their mortgages at the 4 per cent mark, triggering distressed sales. “If we keep going higher, every time we see an interest rate hike from the RBA it adds to the risk. There’s also the continuing unknowns from the flow-on effects of the hikes.”
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