Mortgage affordability tests introduced in 2014 have effectively eliminated loans with loan-to-income multiples of 5 times or higher. As interest rates begin to normalise, affordability tests will put further downward pressure on the maximum size of mortgage advances. Yet with a meaningful rise in rates still some way off, such pressures are not imminent.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services