According to St George bank, rates won't get to the unbearable stage just yet. Chief financial officer, Mr McKerihan, recently said St George expected some moderation in home loan credit growth from 13 per cent to around 10 to 12 per cent nationally in 2006/07, but households still generally remain in good shape. "Most people would probably see only one more tightening in this cycle, perhaps another quarter of a per cent, with it most likely only one. "I don't think you're going to see the absolute level of interest rates get to painful levels." Interesting what each individual considers "painful", I suppose Those who borrowed on 105% loans to 40% of their income back in 2003 might not necessarily agree.