Commonwealth Bank chief executive Ralph Norris has warned of further base rate hikes over the coming months.
Financial giant Commonwealth Bank has warned that an increasing number of householders are experiencing difficulty in paying off their home loans, with further interest rate hikes anticipated.
The Herald Sun reports that Commonwealth chief executive Ralph Norris revealed this week that he was expecting "one or two" base rate rises over the next six months, possibly adding to the worries of home loan clients.
Chief financial officer David Craig noted that other major players in the banking industry had also noted a sharp rise in the number of mortgage delinquencies, with arrears higher than at the peak of the financial crisis in 2008.
However, Mr Norris noted that the impact of this year's flooding in Queensland had caused further difficulties for homeowners and claimed the number of individuals struggling with their debts would most likely be falling if not for the disaster.
Westpac announced last week that 1.5 per cent of its mortgage lending was given to consumers who were more than 30 days behind on their repayments.
By Kate Guthrie
