Tuesday, 4 July 2017

Out of interest

Debt & repayments

Household debt is now at record highs according the RBA's tables, and as reported in the headlines.

Here's the household P&L side of the equation: interest payable to income ratios.


The housing interest payments to income ratio is 36 per cent below the peak. 

Remember that lenders began tweaking interest-only mortgage rates higher in Q2 2017, so this will begin to show up in the figures from next quarter.