Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

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

Arrears remain stable

Staff Reporter 1 minute read

Arrears on prime Australian home loans remained relatively stable in the quarter ending September 30, Standard & Poor’s reported yesterday.

The proportion of residential loans in arrears by more than 30 days rose by 0.02 per cent to 1.52 per cent.

The ratings agency said the RBA’s rate cuts hadn’t affected arrears statistics yet but it was likely they would “kick in” soon.

“The drop in oil prices and the government stimulus package should provide financial relief to most households,” Standard & Poor’s credit analyst Vera Chaplin said.

“Historically, Christmas spending has kept arrears at a high level until the end of the first quarter however the government stimulus payments delivered prior to Christmas may have a moderating impact.”

Advertisement
Advertisement

In the new year however Ms Chaplin said rising unemployment could be reflected in arrears trends with self-employed borrowers most likely to continue to experience greater financial stress.

 

Arrears remain stable
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
question mark 850 Brokers reveal which lenders are leading the way

The results are in for the Third-Party Lending Report 2020, revea...

board room office ta Lender revamps broker team

A low-deposit mortgage lender has announced changes to its third-...

build SMEs showing greater resilience to COVID-19

Businesses with an annual turnover of less than $200,000 have far...

FROM THE WEB