Powered by MOMENTUM MEDIA
the adviser logo
Lender

Australian RMBS delinquencies fall September quarter

by Staff Reporter2 minute read
The Adviser

The Australian prime mortgage market has shown a decline in delinquencies in the third quarter of 2007.

Figures released by Fitch Ratings yesterday showed 30+ day delinquencies for the prime mortgage market decreased to 1.15 per cent from 1.48 per cent – the lowest level since December 2005.

According to Fitch, the improvement supports the agency’s continued positive outlook for Australian prime residential RMBS, which is underpinned by strong fundamentals of record low unemployment and historically low, albeit increasing, interest rates.

The agency also noted that 30+ day delinquencies for low-doc loans decreased in the third quarter to 4.05 per cent from 4.54 per cent in the previous quarter.

“We expect the upcoming Christmas period coupled with recent interest rates rises to result in an increase in arrears levels in Q407 and Q108, although the low base from which these increases will start keeps Australian residential mortgage performance well within Fitch’s expectations,” said Fitch Ratings’ managing director and head of Australian structured finance Ben McCarthy. 

default
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more