Potential indebtedness arising when the market value of a property falls below the outstanding amount of a mortgage secured on it.
- The percentage of the bank's residential mortgage loans in negative equity also fell to below 10 per cent in the quarter, Law said.
- Strong levels of equity allow buyers trading up to put down sizeable deposits, limiting the potential for negative equity.
- The amount of mortgage loans in negative equity in the banking sector as a whole also dropped by 17 per cent, it said.
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