About one in 20 owner-occupiers on variable-rate mortgages are spending more than they earn because of higher interest rates and cost-of-living increases but that share should halve by the end of 2025, the Reserve Bank said in its latest financial stability review.
The semi-annual report, released on Friday, was generally upbeat about the financial health of households and businesses, finding “nearly all borrowers continue to service their debts on schedule” even though conditions are likely to remain challenging for many this year.
