Default risks for Australian homeowners rising, RBA says

Reserve Bank of Australia
The Reserve Bank of Australia
Photo: Alex Towle

Australia’s central bank warned that some borrowers may struggle to pay their mortgages as interest rates rise and housing prices fall.

In its financial stability review published today (October 7), the Reserve Bank of Australia warns risks are already rising for some mortgage payers. It also says some home-buyers could see their disposable cashflows turn negative if rates rise in line with market expectations.

“Although most households are likely to be able to weather increased pressure on

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