Including a podcast of our weekly 'hoon' with Peter Bale and special guest (again) Robert Patman; Plus five things to note this week; Charts of the week; Numbers of the week; Fun things
Thanks for raising the '6% disposable income' spending of loan servicing issue Peter. There is likely to be a huge range here, with many Boomers just running down the last few years of their mortgages. Breakdown would be great as I have read that many people are spending 30, 40 or 50% of their net income on loan servicing.
Bernard talks about stress-testing of 6% mortgage rates by banks, which is fine - but doesn't address the fact that such a scenario would mean some owners' UMI being squeezed to zero, even if they kept their houses. Flow-on effects on the wider economy would be huge.
How does all this square with the large total household debt levels in NZ?
Thanks for raising the '6% disposable income' spending of loan servicing issue Peter. There is likely to be a huge range here, with many Boomers just running down the last few years of their mortgages. Breakdown would be great as I have read that many people are spending 30, 40 or 50% of their net income on loan servicing.
Bernard talks about stress-testing of 6% mortgage rates by banks, which is fine - but doesn't address the fact that such a scenario would mean some owners' UMI being squeezed to zero, even if they kept their houses. Flow-on effects on the wider economy would be huge.
How does all this square with the large total household debt levels in NZ?