Nov
17
Commonwealth CFO Downplays Interest Rate Effect on Mortgages
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Customers had home-loan rates up to 4% above current levels
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Home-price concern building since banks raised mortgage rates
Australian home owners can withstand a rise in interest rates, Commonwealth Bank of Australia’s chief financial officer said, as he sought to ease concerns about the effect of any downturn in the property market on the country’s mortgage borrowers.
Even a 1-percentage point increase in mortgage lending rates would not affect a majority of the bank’s customers as they had set their repayment amounts when rates were as much as 4 percentage points higher than they are now, David Craig, CFO of the country’s largest mortgage lender, said in an interview Tuesday at Bloomberg’s Sydney office…
Commonwealth CFO Downplays Interest Rate Effect on Mortgages
