RBA urges caution on lending criteria as report shows borrowers in better financial shape than 2022

Share of households who have fallen behind on their mortgages has broadly stabilised at pre-pandemic levels, Reserve Bank data shows

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The share of mortgage holders spending more than they earn has fallen to its lowest level since 2022, but the Reserve Bank of Australia has urged banks to keep lending cautiously to protect the housing market from vulnerabilities.

One in 20 owner-occupiers on variable-rate mortgages spent more than they earned in mid-2024 but that figure was now about one in 30, according to the RBA's latest review of Australia's financial stability.

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