Is the interest-only mortgage cliff still an issue?

Via Martin North:

Analysis released today by Digital Finance Analytics reveals that in the coming 12 months around 124,000 interest only loans will need to be switched to principal and interest loans. This is drawing data from our rolling household surveys. This translates to an estimated value of $47 billion, and represents a significant proportion of all IO loans coming up for review. Of these 97.5% are for investment properties.

The reason why households are converting varies, with around 27% deciding to switch, while 67% were persuaded by their lender. There are state variations. NSW and WA had the highest proportion of “forced” moves.

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