Will interest only loans trigger the Australian Property Crash?

You’ve probably noticed that many commentators in the media are convinced that there will definitely be an Australian property crash. There have also been a few suggested catalysts for this terrible eventuality. Recently, Interest only loans have been in the spotlight as ASIC has voiced concerns on the quantity of these loans being originated through mortgage brokers. It is implied that brokers are wilfully putting borrowers at risk and the fear is that there could be an Australian property crash, similar to the calamitous events in the USA ten years ago. So, let’s look at two big questions here: Why …

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