The Reserve Bank has estimated that housing prices may fall up to 15% over the next 2 years if interest rates rise 2 percentage points. It says 40% of borrowers wouldn’t struggle to make the new minimum monthly repayments because they already pay more. However, it warns of risks for the 1-in-5 heavily indebted borrowers who would see their minimum repayments rise significantly. The bank’s twice-yearly Financial Stability Review delivered a rosy assessment of the resilience of Aussie households off the back of rising property prices and additional equity in their homes. The central bank estimates that for the vast majority of borrowers, it would take a 25%-plus drop in home values to send them into negative equity (which is where a borrower owes more to the bank than their home is worth). As for when rates will rise, the big 4 banks reckon it will probably start in June.