Invest
Surprise as home loans in arrears figures fall
The number of delinquent housing loans declined surprisingly in February, despite rising interest rates across the lending marketplace.
Surprise as home loans in arrears figures fall
The number of delinquent housing loans declined surprisingly in February, despite rising interest rates across the lending marketplace.

The report RMBS Arrears Statistics: Australia by S&P Global Ratings found that the number of delinquent housing loans underlying Australian prime residential mortgage-backed securities (RMBS) fell to 1.23 per cent in February from 1.29 per cent in January.
According to S&P, the results were surprising as it normally expects arrears to increase month-on-month in February, reflecting the seasonal effects of Christmas spending and summer holidays, and particularly at a time of rising interest rates.
“The month-on-month decline in arrears in February could mean that some of the rise in arrears in January was partly due to the timing of mortgage-rate increases; the weighted-average variable rate increased for a number of more recent transactions in January,” S&P explained.
“Mortgage-rate increases can create an initial spike in arrears when first applied, particularly if they are introduced when more borrowers are likely to be on holidays. This might account for part of the increase we observed in January.”

The report shows mortgages 31 to 60 days in arrears recorded the greatest improvement in February after recording the largest increase in January. The major banks recorded the largest decline in mortgages 31 to 60 days in arrears.
Further, outstanding loan balances originated by major banks make up more than half of total RMBS loans outstanding, and their arrears performance has a significant influence on the Standard & Poor Performance Index (SPIN) for Australian prime mortgages.
“Several lenders’ recently announced interest-rate increases will continue to take effect in coming months,” S&P said. “We expect this to put further pressure on the SPIN. The borrowers most vulnerable to interest-rate rises are those with higher loan-to-value (LTV) ratios and less favourable refinancing prospects, particularly borrowers with low-documentation and nonconforming loans.”
Arrears in February remained unchanged in Queensland at 1.65 per cent, and rose in the ACT to 0.81 per cent from 0.78 per cent in January and in Tasmania to 1.51 per cent from 1.47 per cent a month earlier. Arrears declined in all other states.
Loans in Victoria and NSW make up more than 54 per cent of the total loans outstanding that underlie Australian RMBS transactions, meaning that the arrears performance of the two states has a large influence on the SPIN. Both states recorded a month-on-month decline in arrears in February, despite a decline in total loan balances outstanding during the month.

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more