/biz/ - Business & Finance

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https://www.afr.com/news/economy/housing-credit-suffers-worst-month-since-1984-20190228-h1btp0

>Low rate terms on interest-only loans are expiring and it has been estimated that about about 650,000 borrowers with loans totalling around $230 billion could struggle to refinance, according to Morgan Stanley.

>"A key contributor to slowing credit growth is that many investors have switched from interest-only mortgages to principal and interest," Mr Kusher said.

>"Previously, these borrowers weren't paying off the principal on their mortgage, now that they are, coupled with far less investor mortgage demand, they are paying back their principal and fewer new investor mortgage applications are occurring which in turn contributes to the ongoing slowing of investor credit growth."