The Reserve Bank says most households are managing higher mortgage repayments and the banking sector is strong.
That information in its Financial Stability Report released on Wednesday.
It said by 2024 18 percent of people's income will be spent on interest payments and there will be pockets of stress.
Mortgage broker and director at Loan Market Bruce Patten said people can only manage so long, with an increasing number feeling the strain.
Patten spoke to Ingrid Hipkiss.
