Worsening housing affordability presents an increased risk of mortgage defaults in New Zealand, according to credit rating agency Moody's Investor Services. In a new report on covered bonds issued by NZ banks, Moody's says it expects housing affordability will remain significantly worse than the average for the last 10 years, "which is credit negative for residential mortgage covered bonds we rate in New Zealand." The report said rising interest rates meant the mortgage payments on new mortgages taken out in August this year would eat up an average of 39.

https://www.interest.co.nz/property/117675/moodys-says-worsening-housing-affordability-has-increased-risk-mortgage-defaults

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