Australian mortgage arrears in decline
Despite rising interest rates, Australian mortgage holders appear to have weathered the worst of the global financial crisis, according to new data released by FitchRatings.
The FitchRatings data has revealed that mortgage delinquencies in Australia have decreased across the board for three consecutive quarters, prompting the company’s associate director in the Structured Finance RMBS team, Leanne Vallelonga, to suggest that it illustrates the ability of Australia’s home loan borrowers to successfully navigate the current cycle of global turmoil.
She said the decline across all arrears buckets covered in the Fitch research was last seen in the same quarter of 2007.
Vallelonga also pointed to the fact that low-doc loan delinquencies had also improved.
The company expects arrears to remain steady through the remainder of 2009, with the risk of some increase to arrears in early 2010 brought about by Christmas credit card spending, increased interest rates and the risk of higher unemployment.
AUTHOR
Mike Taylor
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
