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.

Strengthening economy impacts arrears

Staff Reporter 1 minute read

Mortgage delinquencies are set to rise just as interest rates are expected to climb, global ratings agency Fitch has said.

According to a Fitch report released yesterday, home loans in arrears by more than 30 days increased across all borrower categories in the December 2009 quarter.

Non-conforming, low-doc borrowers were the worst affected category, with delinquencies increasing by more than 50 per cent.

"Though non-conforming borrowers represent a small portion of the market, as expected they were the first to be impacted by the increases in interest rates which took place in Q409. Further deterioration is expected," Fitch's Structured Finance RMBS team associate director Leanne Vallelonga said.

Further interest rate hikes, combined with continued global instability and the risk of rising unemployment in Australia, are expected to push arrears higher in 2010.

However, Fitch said it did not expect an excessive rise in arrears, nor any impact on the overall ratings of local RMBS transactions.

Strengthening economy impacts arrears
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

default

 

more from the adviser
mortgage document sign ta 1 in 5 borrowers lies on loan applications

One-fifth of Australians have admitted to not telling the whole t...

money au ta Judo Bank valued at $1.9bn after equity raise

The SME challenger bank has announced its latest equity funding r...

gentlmen handshake Choice announces commercial white label service

The aggregator has partnered with a finance brokerage to add a co...