Westpac's mortgage delinquencies jump due to COVID-19

Westpac's mortgage delinquencies jump due to COVID-19
Westpac's mortgage delinquencies jump due to COVID-19

Westpac's Q3 financial update saw their mortgage delinquencies soar by 55 basis points due to the COVID-19 pandemic.

Delinquencies over 30 days jumped from 188 bps to 243 bps over the three months to June.

There was an equally big jump in 90+ day delinquencies, up from 94 bps to 149 bps.

"Our approach to applying COVID-19 relief meant an increased number of customers entered hardship assistance", Westpac advised.

 Westpac's mortgage delinquencies jump due to COVID-19

The big four bank provided 135,000 home loan customers with mortgage relief up to July 31, accounting for $51 billion of their $446 billion loan book.

64% of the mortgage holders seeking the relief were owner-occupiers, and 79 per cent were paying principal and interest repayments.

The mortgage deferrals primarily came from New South Wales and Victoria, who made up 70 per cent of all mortgages deferred.

Westpac's mortgage delinquencies jump due to COVID-19

After checking in after three months of the extension, Westpac said that half were expected to return to payment, and the other half requested a further three month extension.

That leaves $30 billion still on pause.

Westpac's total loan portfolio shrunk a touch over the three months to June, down from $445.7 billion to $445.5 billion.

Westpac's mortgage delinquencies jump due to COVID-19

Owner-occupier numbers continued to grow, as investor loans continued their contraction, as did interest only loans, now below 22 per cent of Westpac's loan book.

More mortgage holders are now fixing their home loans, with record low rates on offer.

Although there's still no suggestion on the variable front that the RBA rates will hike rates for at least three years.

 

 

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Westpac Mortgage Delinquencies

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