Arguably you don't really know what your risk appetite is until you face the prospect of losing what you've worked hard for. In a recession how much cash is going out the door when your income drops is your biggest concern. It will be more important than the interest rate so a delayed or lower repayment scheme should be considered if times get tough, even if it's at a higher cost longer term. (However, I'd temper that by saying the official cash rate is not the only determinant of bank interest rates.) Who could you borrow money from to tide you over (ideally without incurring the phenomenal interest rates charged by money lenders).

Source: Stuff March 06, 2020 15:56 UTC