1. Tom

    A 3% stress test?, dont you think thats a bit weak. The last crisis caused a lot more than 3% stress.

    • Karl Deeter

      Hi Tom, thanks for dropping by and for the comment. The 3% stress test isn’t a measure of ‘stress’ it’s the ability of a borrower to endure a 3% hike in interest rates when priced over the current SVR which means you gauge if the person could still afford payments at interest rates of c. 7.5-8%.

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