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I can tell you exactly how they stress test this in their servicing calculators. Most lenders assume P&I repayments at an 'assessment rate' which is often around 1.5% - 2.0% higher than the actual rate. Lenders will simply argue that they factor in higher rates into their initial...

Lower rates definitely encourage people to pay more for houses, which means bigger loans, which means more money per transactions. I've also found that business can be fairly good when rates increase. People look at their current loan and wonder if they can get a better deal. Overall I find...

Let's avoid the emotive terms like rates of 1.5%. The article is talking about the RBA cash rate dropping from 2.5% to 1.5%. This suggests that the delivery rate to home loan borrowers would go from about 5% to 4%. I guess another 1% cut is possible, but I think it unlikely. The RBA is...