"Based on a $50,000 deposit and a gross annual income of $77,000, St George and Westpac both offered to lend our reporter $465,000.
With an interest rate of 7 per cent, the monthly repayments of $3094 would eat up more than 60 per cent of their after-tax monthly salary. According to the Reserve Bank, a borrower is likely to be in mortgage stress if spending 30 per cent or more of income on monthly repayments."
This really is a recipe for disaster...the banks are financially irresponsible and IMO show lack of "Duty of Care"
