Many people would like to own their own homes and commit to debts over 30 years.
This, of course, carries risks as the bank is able to repossess (and sell) a home if a single payment is missed during the three decades it takes to repay the loan.
Normally, the bank will wait for at least more than one missed payment but the risk is real and consumers do well to consider insurance options to protect their investment (including taking advantage of any retrenchment cover that may be included in insurance for their massive loan).
Increases in the Repo Rate mean that home owners have to pay more and they should prioritse making these increased payments of could face losing their asset.
