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The average borrower continues to remain ahead on their home loan, despite higher interest rates, as this Reserve Bank graph shows.

The Reserve Bank says the share of borrowers who are behind on their mortgage is โ€œexpected to remain very lowโ€, even if conditions worsen.

โ€œAbout 1.5% of borrowers are estimated to have their essential expenses and mortgage costs exceed their income and be at high risk of depleting any available buffers. Even if the unemployment rate were to increase by 2 percentage points โ€ฆ the share of existing borrowers at risk of running out of buffers over the next year or so would likely remain at low single-digit levels. Similarly, most borrowers would be well placed to service their housing loans if interest rates were to increase further.โ€

Furthermore, only about 0.1% of loans are in negative equity at current housing prices, which means the overwhelming majority of forced sellers would be able to repay their mortgages.

Subiaco finance brokers are here to help

Interest rate rises are here, but you donโ€™t have to fear with the right broker on your side.

The team at Sonam Capital are here to empower you through financial knowledge.
Weโ€™ll take the time to get to know you and your unique situation and speak in a language
you can understand, with strategies you can implement for the best possible outcomes.

Nick, Wayne and Amanda at Sonam Capital are your Subiaco finance specialists.

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