Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
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.

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

New APRA data has revealed that ANZ was the only big four bank to record negative home lending growth before the coronavirus outbreak altere...

The rapid move to support digital mortgages amid the coronavirus pandemic “will have a dramatic effect” on how people will transact on m...

Mortgage holders will be breathing a “sigh of relief” following the federal government’s announcement of a new $130-billion support p...

FROM THE WEB

podcast

LATEST PODCAST: Further relief for SMEs and borrowers

Do you think Australia will move to quantitative easing this year?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

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