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What rubbish! Sure, people are paying more for homes as prices increase, but those buying a more expensive home are assessed by their bank as to affordability. And before that they personally have made the decision as to whether they can afford such a home. Banks also build an interest rate rise buffer when assessing serviceability.

So, if home values fall somewhat, how will that affect someone's ability to service their existing debt? It's not like banks increase the repayments when the value of the property diminishes. The borrower simply needs to continue to repay the debt in the normal way and wait until property prices rise again in the future. That is their price for accommodation, and they have taken on that commitment willingly.

The only problem would be when a value drops so low that a bank calls in their debt, but those with low equity will have mortgage insurance, and those with normal equity would have to see a tremendous price drop.

This is pretty ordinary journalism seeking a sensational headline. You can do better!