To be clear from the outset, I don't see much chance that rising mortgage rates will get to the point that people will be forced from homes. The above figures in a nutshell are why we've seen mortgage rates screaming ahead. The interesting thing to note about that experience was the struggle the Reserve Bank had getting traction against homeowners with fixed mortgage rates. This means that any changes in mortgage rates made now get considerable 'bang' for their bucks very quickly. Two theoretical examples, one of the resetting of a two-year fixed mortgage (30-year term) taken out in November 2019 and the other of one-year fixed mortgage (again 30-year term) taken out in November 2020.

Source: New Zealand Herald November 23, 2021 08:46 UTC