subscribe to our newsletter
Mortgage arrears growth shows no signs of slowing

Mortgage arrears growth shows no signs of slowing

The number of housing loans in arrears has extended its rise for the seventh consecutive month, new figures have revealed.

According to Standard & Poor’s Performance Index (SPIN), 1.21 per cent of prime residential mortgage-backed securities (RMBS) were in arrears during May – up from 1.14 per cent in April, and from 1.07 per cent 12 months prior.

“Most of the increase in arrears for the month was in the more severe category of 90-plus days overdue,” S&P noted.

“The larger upward movements were in the major banks and other bank categories, while non-bank financial institutions was the only sector to see a decline in arrears in May.”

Meanwhile, the proportion of non-conforming loans in arrears increased to 4.71 per cent during the month from 4.25 per cent in April.

“The non-conforming measure tends to exhibit some volatility from month to month, but remains low by historical standards and well below the peak of 17 per cent in 2009,” S&P added.

[Related: WA leads nation for mortgage arrears]

 

Mortgage arrears growth shows no signs of slowing
mortgagebusiness logo

Latest News

The financial services royal commission has heard evidence of further wrongdoing from several lenders, including three major banks, as the p...

A handful of young Australians working in the mortgage and finance industry have been recognised for their excellence at the inaugural Young...

CBA’s decision to offload its wealth business should come as no surprise to anyone. Running a “simple” outfit has now become the chief...

Promoted Stories

podcast

LATEST PODCAST: The rise of mortgage prisoners, further regulation and the importance of good advice

Do you expect access to credit to get harder this year?