lol well der…..if rates were this low and people were defaulting/in arrears then we would have to be in serious doo doo
– http://www.theage.com.au//breaking-news-business/home-loans-arrears-at-11year-low-20151223-4885z.html
The percentage of home loans in arrears has fallen to an 11-year low, according to ratings agency Fitch.
Just 0.91 per cent of loans in what Fitch calls the Dinkum RRMBS (residential mortgage-backed security) index had payments overdue by more than 30 days in September.Indeed – you would imagine there will be an increase in the default when rates do rise in the future, especially those leveraging to the new peaks of the market.
As usual there are risk mitigants those people can take – ie fixing if they are exposing themselves to mortgage stress above x% interest rates.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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