Is Australia’s interest-only mortgage cliff as big as US sub-prime?

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Domainfax is worried:

Queensland property investor Peter Button “grabbed the profit and ran” when his interest-only loan expired and he realised that refinancing would trigger a hefty increase in repayments.

“I saw a refinancing issue coming over the horizon, it was easier to just get rid of it,” said Mr Button who recently sold his two-bedroom apartment in the Brisbane CBD.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.