Central bank estimates fewer than one in 100 borrowers owe more on their home than its worth
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The Reserve Bank says households are well placed to weather the twin storm of rising interest rates and plunging 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.
