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.”
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.
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