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Thursday, 17 December 2015

Repayment buffers

Low interest rates are allowing homeowners to forge ahead on repayments. 

From the Reserve Bank: "...two-thirds of borrowing is [now] covered by a repayment buffer of at least one month's worth of required mortgage payments, and for half of this, that buffer is more than one year."

One third have at least a 12 month buffer, a remarkable statistic.

The RBA also found that across every state "all arrears levels are relatively low", with New South Wales the best placed of all thanks to its solid economic performance. 

Full speech here.