...However, to be approved for a mortgage, they must also pass a stress test, per Central Bank rules. This tests the ability of the borrower to repay the loan each month should interest rates rise by 2 percent above what the lender is offering them.
Can't really comment on property as I don't understand how young people can afford to buy/rent these days. However, if mortgagees told the bank the truth when they got their mortgage, they should have some buffer as rates rise upto 2% over the current rate.
The taxi industry will survive. Most of us survived the last recession. Even if the customer's wallet shrinks again, the taxi biz has been shrinking too. According to
the NTA (PDF), there were 23.7k PSV vehicles and 38.5k driver licences back in 2011 but nowadays it's closer to 19k vehicles and 20k drivers.
The number of drivers has almost halved in 11 years! The industry will reinvent itself and adapt. The NTA has part-funded upto 10% of the fleet to be WATs and nowadays, it's part-funding EV (maybe 2,000) over 3 years. That's almost 10% of the fleet converted to EV!
The Govt/NTA are throwing money at the 'vehicle' side of things but it's the drivers I'd be looking at. The number of drivers has almost halved since 2011 and, of those that remain, 30-40% are over 60 years old and must be thinking of slowing down/retiring. The NTA will have to let new drivers into the biz. But the Govt are pushing apprenticeships and the construction industry so where are the new drivers gonna come from?
