‘A lot of people’ will be in ‘a lot of trouble’ when interest rates rise

Sky News Darwin Bureau Chief Matt Cunningham says NAB is right to back higher mortgage buffers since “a lot of people” will be in “a lot of trouble” when interest rates inevitably go up.

The Australian Financial Review is reporting NAB is backing another increase in the loan buffer for borrowers from Australians prudential regulator to help avoid a crisis caused by rising house prices.

“I think they’re probably on the right track,” Mr Cunningham told Sky News host Jenna Clarke.

“There's got to be some real concern about the amount of money that people are borrowing and their capacity to pay it back if, and I think it’s more a when, interest rates do rise.”