RBA Warns Up To 100,000 Households at Risk of Mortgage Stress By 2025 Due to Rising Interest Rates

• RBA estimates 5-6% of mortgage borrowers spending more than they earn, could peak above 100,000 households by end 2023

• Just above 2% may exhaust savings buffers by end 2025; 50,000-100,000 risk running out of cash for mortgage

• Banks expected to survive even with 10% unemployment & 35% drop in housing values

• Risks from overseas include Chinese property sector weakness, over-optimistic financial markets, cyber attacks

• Mortgage arrears increased but remain low; most borrowers can sell house or get hardship help from bank