RESEARCH
HOME loan arrears were up over December, with both prime and nonconforming arrears climbing after elevated consumer spending in the lead up to the summer holiday season.
According to S&P Global Ratings, the Standard & Poor’s Performance Index (SPIN) saw prime mortgages—excluding...
After Black Friday sales and the approaching Christmas and holiday season, December is one of the peak months for increasing arrears.
Months of interest rate hikes by the RBA also put borrowers under further upward pressure, with February’s rise of 25 basis points bringing rates to 3.35%.
The ongoing and fast increases to interest rates has led to the highest level of mortgage stress in Australia since 2013, with 23.9% or...
Prime arrears increases were higher in the earlier arrears category of 31 to 60 days, with nonconforming arrears increases felt across all categories.
By state, the Northern Territory lead 30+ arrears at 2.11%, followed by Western Australia at 1.46%, Victoria at 1.22%, NSW at 1.04%, South Australia at...
New lenders were still entering arrears, with loans moving from early to more advanced stages of arrears.
Nonconforming arrears began rising in July 2022, with nonconforming borrowers typically more highly leveraged with larger loans and fewer refinancing options.
With nonconforming arrears accounting for approximately 10% of total RMBS loans outstanding, arrears are expected to...
Nonbank originators are still seeing the largest increase among RMBS originators, as a result of the sector’s low seasoning and higher rate of...
Typically speaking, the arrears cycle peaks around January and February, though the extent of increases is expected to be more ...