Christopher Kent, Reserve Bank of Australia Assistant Governor (Financial Markets) speaking on T
he Limits of Interest-only Lending
- says around A$480 bln interest only loans to expire by 2021
In the search for things to worry about the big lump in interest only housing loans due to expire has reached consciousness, garnering some news and articles etc. The concern is that as lenders switch to principal and interest loans (from interest only) repayments go up and weigh on household consumption. Also that there will be those on interest only loans that will find difficulty making payments (or even being approved for) principal and interest loans.