Australian borrowers are increasingly “vulnerable”
Moody’s, the global credit rating agency, said Australian borrowers now have an all-time high aggregate housing debt level of 140 per cent of disposable incomes.
Moody’s said the mortgage market is becoming distorted with investors keeping first home buyers out of the market.
“Borrowers’ vulnerability to economic shocks is elevated and unprecedented,” said Moody's.
While home loan arrears are currently low, Moddy’s said more borrowers will get in trouble when and if interest rates begin to rise again.
Source: Mortgage Business