Mortgage stress to spread on higher rates

THE combination of the highest relative property values in the world with the highest official interest rates naturally produces high home loan repayments.

Just how high and how painful is now becoming more than obvious. The recent round of record-breaking bank profit announcements had a nasty sting in the tail, and that was the rise in home loan delinquencies and those falling behind in their repayments.

With more rate rises on the horizon and property values falling, the situation is just going to get worse.

Read more: http://www.news.com.au/money/david-and-libby-koch/mortgage-stress-to-spread-on-higher-rates-property-prices/story-fn7kicty-1226056523884#ixzz1MT5t0NP0