"Delinquent Loans to Jump"

Or so says Eric Johnson in today's SMH Business Day. "A rush of first home owners taking advantage of government cash incentives will result in headaches for banks over the next year as most brace for a surge in customers falling behind in payments."
Eric says that the second year is the time when most new home owners start falling behind on their loans. So if that trend is matched by rising interest rates, as now seems certain, there could indeed be a jump in delinquencies.
JPMorgan issued a report saying that australians were vulnerable to interest rises because their housing debt was close to record levels.