Powered by MOMENTUM MEDIA
subscribe to our newsletter

RMBS arrears rise, auto delinquencies fall

Moody’s Investors Service says mortgage delinquencies will continue to increase in Australia, with rental yields in the two biggest cities to pose “some risk”.

According to figures released by the credit ratings agency, the delinquency rate for prime residential mortgage-backed securities (RMBS) more than 30 days in arrears rose to 1.44 per cent in February from 1.35 per cent in January, and from 1.34 per cent on the previous 12 months.

Looking ahead, Moody’s expects delinquencies will continue to rise, as its forecast of 2 per cent GDP growth in Australia in 2016 “remains below the long-term average of 3.5 per cent”.

“Record low rental yields in Australia’s two biggest cities, Sydney and Melbourne, will also pose some risk to RMBS performance,” it added.

Meanwhile, the 30-plus delinquency rate for auto loan asset-backed securities fell to 1.49 per cent in February from 1.52 per cent in January, but increased from 1.20 per cent on the 12 months prior.

Advertisement
Advertisement

PROMOTED CONTENT


[Related: RMBS arrears and defaults to rise, says Moody’s]

RMBS arrears rise, auto delinquencies fall
mortgagebusiness

Latest News

Reverse mortgage lenders have accessed a small fraction of the potential retiree housing market in Australia, according to Deloitte. ...

Pepper Money has priced its second I-Prime deal for the year, upsizing the figure to $850 million. ...

The LMI provider has announced a new CFO following the resignation of its current CFO, effective 24 September. ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

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.