True that low LVRs help. The banks are doing 10% of their business at 80% LVR or higher. My fear would be that at 47% drop in value those and a lot of others (the 10% from last year, and the year before, and the year before that) walk, and don't take the hit. A lot of them can't take the hit - unemployment 9.3% !! interest rates 8.4% !! …
True that low LVRs help. The banks are doing 10% of their business at 80% LVR or higher. My fear would be that at 47% drop in value those and a lot of others (the 10% from last year, and the year before, and the year before that) walk, and don't take the hit. A lot of them can't take the hit - unemployment 9.3% !! interest rates 8.4% !! It's an admittedly bleak set of conditions I hope never come to pass. Curious that they want to test it.
True that low LVRs help. The banks are doing 10% of their business at 80% LVR or higher. My fear would be that at 47% drop in value those and a lot of others (the 10% from last year, and the year before, and the year before that) walk, and don't take the hit. A lot of them can't take the hit - unemployment 9.3% !! interest rates 8.4% !! It's an admittedly bleak set of conditions I hope never come to pass. Curious that they want to test it.