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ISCOVER
Staff Reporter
Delinquency rates on Australian mortgages stabilised last quarter, new research has revealed.
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According to Moody’s Investors Service, prime mortgage delinquencies greater than 30 days were steady at 1.39 per cent, compared to 1.34 per cent in Q1 2010.
Non-conforming mortgage delinquencies greater than 30 days rose slightly to 13.74 per cent in June from 13.02 per cent in March.
"Borrowers in outer south-western Sydney and Fairfield-Liverpool are experiencing greater payment difficulties in comparison to those in other regions. These two regions feature the highest proportion of mortgage delinquencies, with 2.5 per cent to 3 per cent of loans falling into arrears of 30 plus days past due,” Moody’s senior analyst for the structured finance group Arthur Karabatsos said.
"If current official interest rates hold, however, we don't expect significant pressure on delinquency levels. If they were to increase beyond these 'neutral' levels -- that is, neither stimulating nor constraining the economy -- delinquencies may rise, although we don't expect to witness the 1.63 per cent seen in January 2009.
"We expect rating performance of the RMBS sector to be stable.”
