Its not a problem as long as people hodl and can afford to repay. Thats why extra repayments while interest rates are low is key. will be interesting to see how far it will drop but I believe its more of a correction than a crash. From memory property is 27 percent above the trend. So if it drops 27 percent its a correction ;) if other factors like unemployment come into play, well it could turn into something more sinister. Its looking grim for the developers and construction industry.