Mortgage Cliff? | Aussie Stock Forums

A senior banker / financial planner friend of mine who knows his stuff was telling me he was quite concerned about a looming mortgage cliff approaching when extremely low rates converted to the currently increasing variables in the coming months. The banks test borrowing capacity to +3% ish so there’s some leeway, but the Fed also said they weren’t going to increase rates for another couple of years, so some people are probably going to be in a pickle. Just how much of a pickle is the question. It’s not a US housing collapse / CDO / GFC type situation, but I do wonder if it’s going to play a role in any economic recovery this year. Or, is within our capacity to navigate through this easily?

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