Wednesday, August 8, 2007
Size of loans make rate rise worse
This will be tipping point for a lot of borrowers," he said. "It will be like hitting a panic button."
Property prices have gone up so much in the past two decades that mortgage repayments now soak up 9.5 per cent of all disposable household income compared with 6 per cent in 1989. As a community we are now forking out a much bigger proportion of our incomes to pay the interest on our mortgages than when rates were an eye-popping 17 per cent.