PHOTO: Numerous commentators have warned that the end of interest-only periods could be disastrous for Australian housing — something the RBA has now dismissed. Source: Supplied

THE Reserve Bank has estimated that $360b in housing loans will hit the end of their interest-only periods in the next three years, but downplayed fears saying so far the transition has been smooth.

RBA Assistant Governor (financial markets) Christopher Kent told a Housing Industry Association Breakfast in Sydney this morning that the smooth transition from interest-only loans — which made up 40 per cent of housing credit at its height in 2015 — was “likely to remain so” given several years of tighter lending standards.