2 rate hikes, not just 1, page-32

"Normal" interest rates from RBA are 5%, over last 15-18 years


bank on paying 7% (retail) going forward, the only reason they will get to 8% is if the property market is on fire.



a .25% increase = $4.80 pw (interest) for every $100k of mortgage.

The average FHB has $270k mortgage
every .25% = $13 pw.

+ 1% and back to "normal" will cost (the most vulnerable) $52 pw extra (an easy spend at the pub friday night)

I think they'll be able to find the extra money from cutting out rubbish spending before they'll lose the house.

Gee, maybe they'll have to get a flatmate in to help pay if it goes to the fabled 10% (GB), but I doubt it.


Given unemployment has been far less than the bears and doomers (Keen) were predicting 2 years ago.

I doubt very much the doomers will have a win finally.



they don't seem to link

rates with house price increases with serviceability BOTH WAYS, up or down.







I think theyll be able to find it