Login
ISCOVER
Delinquencies on Australian mortgages recorded a surprise decline in the first quarter of the year, bucking long-term seasonal trends and defying increasing economic pressures.
According to Fitch Ratings’ Dinkum Index, 30 plus day delinquencies decreased from 1.75 per cent in the December quarter to 1.52 per cent in the March quarter.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Delinquencies on low doc loans also improved with 30 plus day delinquencies sliding to 3.65 per cent – from a record peak of 3.95 per cent in the December quarter.
“This is the first decrease in arrears from the fourth quarter of a year to the first quarter of the next year recorded in the ten years of Dinkum Index Data,” Fitch associate director of structured finance RMBS Leanne Vallelonga said.
An inability to refinance saw non-conforming low doc 30 plus day delinquencies rise in contrast to the other sector and set a new record high of 19.79 per cent, Fitch said.
This was more than five times higher than conforming low-doc 30 plus day delinquencies of 3.65 per cent.
