More from the ABC
http://www.abc.net.au/news/2018-06-19/fears-as-interest-only-loans-roll-into-pri...Fears of housing 'fire sale' as interest-only loans roll into principal plus interest.7.30
By Liz Hobday
Updated about 7 hours ago
As property prices in Australia have climbed over the past few years, thousands of Australians desperate to get a foothold on the property ladder have used interest-only loans.
But the interest-only period on these loans doesn't last forever.
Over the next three years, interest-only loans worth a combined total of about $360 billion will roll over to interest plus principal — and that means borrowers will face higher repayments.
"The kind of nightmare scenario is where a lot of people need to sell at once, and that's when you see a kind of fire sale mentality, and could see very significant downward pressure on prices," said Professor Richard Holden from the University of New South Wales Business School.
"That puts the banks under stress, and their balance sheets under stress, and it could lead to significant financial instability."
The 250,000 + immigrants a year will snap 'em up.