Interest-only investors facing almighty cash crunch
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From The AFR comes another report on how borrowers switching from interest-only mortgages are facing a huge lift in repayments:
A typical borrower paying 4.50 per cent on a $400,000 loan will have to prove to their lender they can meet repayments for a 7.25 per cent loan, or an increase in annual repayments from $18,000 to more than $32,700, the analysis shows…
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.