Mortgage arrears hit all-time high
22/06/08 16:18
Arrears in Australia for securitised mortgages increased to 1.45 per cent during April, its highest ever recorded level, said Standard & Poor’s Ratings Services (S&PRS).
Securitised mortgages are those 20 per cent of mortgages where the funding is sourced from wholesale debt markets as opposed to traditional banking deposits while the arrears measures means borrowers are more than 30 days late on payments.
Arrears level for sub-prime Australian loans is ten times higher at 14.7 per cent, reported S&PRS. Sub-prime loans in Australia however only make up a tiny minority of the mortgage market, estimated at only a one to two per cent in Australia compared to the 15 per cent proportion they constitute in the US.
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Securitised mortgages are those 20 per cent of mortgages where the funding is sourced from wholesale debt markets as opposed to traditional banking deposits while the arrears measures means borrowers are more than 30 days late on payments.
Arrears level for sub-prime Australian loans is ten times higher at 14.7 per cent, reported S&PRS. Sub-prime loans in Australia however only make up a tiny minority of the mortgage market, estimated at only a one to two per cent in Australia compared to the 15 per cent proportion they constitute in the US.
Click here for full story