Ensure you never miss an issue of the
real estate business bulletin
Arrears ease, but not for long

Arrears ease, but not for long

by Reporter 0 comments

Staff Reporter

Arrears eased slightly in October 2010, new research has revealed.

According to the latest arrears report by Standard and Poor’s, loans underlying Australian prime Residential Mortgage Backed Securities (RMBS) that are greater than 30 days in arrears eased slightly to 1.38 per cent in October 2010, from 1.41 per cent in September 2010.

“While arrears levels remained relatively stable over the last three months, Standard and Poor’s credit analyst Vera Chaplin said she expects delinquencies to rise in 2011 as the impact of higher mortgage rates, Christmas spending, and Australia’s extensive floods on some borrowers’ financial position begin to filter through.

“In particular, in our opinion, self-employed borrowers whose cash flows may be sensitive to business conditions could be exposed to greater financial pressures. As a result, low-documentation loan arrears may rise further in the new year, following the increase to 4.35 per cent in October 2010, from 4.22 per cent a month ago.”

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Arrears ease, but not for long
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?