Economist warns of sub prime property crisis in Australia

Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
Rising property prices could result in a mortgage crisis in Australia that could be as harmful as that in the US that sparked the global economic crisis, a conference in Sydney has been told. The possibility of a sub prime mortgage crisis results from prices being 20% higher than they should be and people just [...]

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Annie_Smith

New Member
This means high-risk loans

It will result in borrowers with little or no income, little or no equity and a poor credit history have been “given” variable interest rate mortgages they could never have been able to afford.

In simple terms these are high-risk loans.
 
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mattio

New Member
Agree with Annie. It will be high-risk loans with high interest, which have a high probability to end up in foreclosure.
 
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