Treasurer warns of home rates ‘burden’

Federal Treasurer Peter Costello has warned homebuyers not to “overburden” themselves and remember that interest rates could rise. Although rates are currently at 30-year lows, for most of the past 30 years they have been in double figures, he said. Costello advised homebuyers to have “a bit of a cushion”. His warnings follow those from the Reserve Bank, Treasury and the Opposition that the property boom may burst and leave borrowers who are highly indebted at risk of losing their home.