Australian Prime Home Loans

<html><body>
Australian prime home-loan arrears increased in November, according to S&amp;P Global Ratings' latest data.

The Standard &amp; Poor's Performance Index (SPIN) for Australian prime mortgages edged up to 1.16% in November from 1.07% a month earlier. 

The SPIN for Australian nonconforming mortgages also increased in November, rising to 3.31% from 3.22% the previous month.

“COVID-19's true effect on debt serviceability is emerging as fiscal stimulus measures taper off and borrowers exit mortgage-relief periods,” it advised.

“We expect the level of granted mortgage deferral to plateau in the coming months because the remaining borrowers under such arrangements are more likely to face more protracted debt-serviceability pressures."

“We expect these borrowers to transition to formal arrears management and hardship arrangements at the end of mortgage-relief periods.”

The rise in arrears in November was tipped to continue in the coming months as fiscal stimulus measures taper off and mortgage-relief periods expire, “unmasking the true extent of arrears.”

However historically low interest rates, improving jobs growth, and a recovery in property prices will temper arrears increases, it advised.

“Property price growth will help debt serviceability by enhancing borrowers' refinancing prospects, a common way for borrowers to self-manage their way out of financial stress,” it concluded.
</body></html>

The Standard & Poor's Performance Index (SPIN) for Australian prime mortgages edged up to 1.16% in November from 1.07% a month earlier

Australian Prime Home Loans

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Australian Prime Home Loans

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News