What happens if too many home owners default on their home loan?
With rising interest rates and cost of living pressures rising, many Aussies may be asking What happens if too many home owners default on their home loan?
If too many home owners in Australia default on their home loans, it could have a negative impact on the property market. When a large number of homeowners default on their loans, it can lead to an increase in the number of foreclosures, which can put downward pressure on property prices.
In addition, a high number of defaults can also lead to a reduction in lending activity by banks and other financial institutions, as they may be more hesitant to extend credit to potential home buyers. This can make it more difficult for people to obtain financing to buy a home, which can further decrease demand for property and put additional downward pressure on prices.
Overall, if too many home owners default on their loans, it could lead to a decline in the Australian property market, with potential negative consequences for homeowners, investors, and the economy as a whole.
If you are concerned about your home loan or your repayments, NOW is the time to speak with a mortgage broker >