Home loan delinquencies rise in January

Home loan delinquencies rise in January
Home loan delinquencies rise in January

The level of delinquent housing loans for prime residential mortgage-backed securities increased 1.29 percent in January from December's 1.15 percent, according to S&P Global Ratings.

The category for mortgages 31-60 days in arrears showed the largest increase.

The report said the magnitude of the month-on-month increase in January 2017 was higher than in previous months.

"While some of the increase is due to a decline in outstanding loan balances, the category for mortgages 31-60 days in arrears showed the largest increase," the report found.

"This suggests more borrowers have fallen behind on their loan repayments for the first time.

"The major bank and regional bank sectors recorded larger increases in borrowers who are 31-60 days behind on their mortgage repayments.

"All originators except nonbank financial institutions recorded an increase in arrears in January compared with the previous month.

"Despite the increase, arrears levels in January remained close to long-term averages."

"Mortgage arrears rose in every state and territory in January from the previous month.

"Among the states, South Australia recorded the largest increase in arrears, rising to 1.81 percent from 1.53 percent in December, Home loan arrears in Western Australia rose to 2.33 percent in January from 2.10 percent in December.

"Arrears rose month on month in January to 1.03 percent in New South Wales and 1.18 percent in Victoria."

The report can be found at https://www.sfsurveillance.com.au.

Tags: 
Home Loans Housing Loans

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