New Zealand households increased their mortgage debt by a net $19 billion or 9.2 per cent in the year ended August. Brian Fallow: Climate change not just about carbon Brian Fallow: China's debt a recipe for riskIt is a bit ironic that while some people panic about foreign purchases of New Zealand property - tenants in our own country! But the "inflammatory" role of very low interest rates has to be appreciated as well, he says. How high house prices are, and how low mortgage rates are, stand out like the proverbial, Ebert says, even in an economy that is otherwise looking normal. Their debt servicing rates would pass previous peaks if mortgage rates were to return to their 10-year average of 6.7 per cent.

Source: New Zealand Herald October 13, 2016 17:23 UTC