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The Guardian - AU
The Guardian - AU
National
Patrick Commins Economics editor

First home buyers with big loans among those most at risk of falling into negative equity, RBA warns

The RBA in its latest financial stability review warned that even a 20% property price crash would only push around 5% of mortgages into negative equity.
The RBA in its latest financial stability review says that even a 20% property price crash would only push around 5% of mortgages into negative equity. Photograph: Sarah Wilson/AAP

The Reserve Bank says households are well placed to weather the twin storm of rising interest rates and falling property prices, although it says recent borrowers who have taken out big loans are most at risk of falling into negative equity.

Despite a deepening property price slump concentrated in Sydney and Melbourne, the RBA’s analysis suggested that fewer than one in 100 borrowers owe more on their home than it’s worth.

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