27 December 2007
The big banks have warned Australian's that an interest rate rise is on the cards despite the Reserve Bank of Australia holding off on an official interest rate rise in December.
Low-doc home loans that are charged at a higher rate of interest through non-bank lenders are proving to be difficult to repay.
Borrowing through non-bank lenders is also more likely to see them apply to the courts for property repossession in an effort to be reimbursed.
The Reserve Bank board meeting in February is expected to result in yet another official interest rate rise taking the official interest rate to 7% from today's 6.75%.
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