Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Mortgage arrears on the rise: S&P

Mortgage arrears on the rise: S&P

For the first time in six months, the portion of Australian housing loans in arrears have increased for prime and non-conforming residential mortgage-backed securities (RMBS).

According to the Standard & Poor’s Performance Index (SPIN), arrears levels for prime RMBS rose to 0.92 per cent during November from 0.88 per cent in October, while non-conforming RMBS levels increased to 4.22 per cent from 3.95 per cent on the month prior.

Narelle Coneybeare, credit analyst at S&P, said overall arrears levels remain historically low, but she expects some increases in coming months, particularly due to seasonal factors.

Advertisement
Advertisement

“The total current loan balance for the prime and non-conforming sectors declined during November, which could have contributed to the month’s arrears movement,” she noted.

Meanwhile, demand for home loans grew stronger in November, according to new figures released by the Australian Bureau of Statistics (ABS).

The housing finance data revealed that 56,798 home loans were approved over the month – an increase of 1.8 per cent from October despite prior forecasts of a 0.5 per cent decline.

Mortgage arrears on the rise: S&P
mortgagebusiness

 

Latest News

Regulators could move to set caps on loan volumes for borrowers with high debt-to-income ratios if the housing market recovery continues to ...

The federal Treasurer has welcomed the final budget outcome for the 2019 financial year, which shows that the deficit now equates to zero pe...

The Federal Reserve has slashed rates for the second consecutive month, “reinforcing” the necessity of further cuts to the cash rate in ...

FROM THE WEB
podcast

LATEST PODCAST: New lending launches

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.