In its latest Financial Stability Report released today, the RBA said the Australian economy is in a strong position to weather the risks coming from overseas.
"Around 5 per cent of variable-rate owner-occupier borrowers are estimated to have had expenses exceed their income as interest rates and prices have risen over recent years, leading to an estimated cash flow shortfall," the report states. "The share of borrowers more at risk of falling behind on their loan – that is, those estimated to have a cash flow shortfalllow buffers – has increased over the past two years but still represents less than 2 per cent of variable-rate owner-occupier borrowers," the RBA said.While low, that figure would still see up to around 100,000 homeowners running out of savings and falling behind on their mortgage payments by October unless interest rates ease or their wages increase.