A recession and job losses should see a 20% correction in house prices in 2021 . Throw in Coronavirus for another 10% correction.
https://au.finance.yahoo.com/news/interest-only-home-loans-to-convert-to-principal-and-interest-233230795.htmlAround 730,000 interest-only loans will become principal and interest loans over the course of 2020, with the average repayment to increase by a whopping $3,600 a year. Most interest-only loans have a set three to five year interest-only period, after which they convert to more expensive principal and interest repayments.
And if borrowers took out a loan larger than the 2015-16 average of $395,000, the financial sting will be even bigger.
