The RBA has warned that investors with IO loans might face negative equity more quickly than P&I borrowers if house prices were to drop substantially. RBA assistant governor Michele Bullock said on Monday that a large share of property investors has chosen IO loans because of the tax incentives, and that this could be a source of financial stress if their circumstances were to take a negative turn. To read the entire article by Australian Broker on their website, please click here.

 

Tags: ,