Powered by MOMENTUM MEDIA
subscribe to our newsletter

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.

“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).

Advertisement
Advertisement

PROMOTED CONTENT


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

Several lenders, including the major banks, have announced relief measures for Victorian borrowers impacted by the floods. ...

The major bank has forecast an RBA tightening in two steps in H2 2023 to take the official cash rate to 0.5 per cent by the end of 2023. ...

Housing-related consumer sentiment has plummeted by 27 per cent since November 2020, and is in pessimistic territory for the first time sinc...

How long do you think it should take to discharge a mortgage?

Website Notifications

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