A correction - a reversion to the mean - will undoubtably occur at some point. If we mirror the HK model and experience a 1-1.4% loan delinquency rate then I don't believe the banks will suffer too much. Those that will benefit though are investors that have kept some cash aside to pick up some bargains at mortgagee auctions. The big question is the time frame. If we ever get a big spending labour government then you can kiss low interest rates goodbye and sit back and watch the mortgagee carnage.
