Mortgage debt-service ratios

Created
Thu, 20/11/2025 - 20:00
Tuli Saha and Alexandra Varadi High levels of household indebtedness can amplify negative economic shocks, if highly indebted mortgagors make larger cuts to spending in response to them or are more vulnerable to defaulting on mortgage payments adding to bank losses. These are tail risks which can pose significant financial instability. In this post, we … Continue reading The debt trigger: how household debt can amplify the effect of rising rates