alarm over first-home 'time bomb', page-2

To put some figures on it.

Loan size = $300,000
Current rate = 5% (current rate)
Loan term = 25 years

Weekly repayments = $440

Loan size = $300,000
Current rate = 7% (neutral rate)
Loan term = 25 years

Weekly repayments = $530

Loan size = $300,000
Current rate = 9% (interest rate 12 months ago)
Loan term = 25 years

Weekly repayments = $630

FHBs will probably have to come up with an additional 40% at some time in their loan, lets hope they never have kids or lose their job or it could send them bankrupt.