Borrowers in trouble in NSW
Lenders with customers in arrears on home loans of 90 days or more are overwhelmingly concentrated in New South Wales, a new analysis of the performance of securitised home loan pools by Moody's Investors Service shows. Arrears of more than 90 days are 0.66 per cent of all loans in New South Wales, but only 0.22 per cent Australia-wide. Eight of the top 10 delinquent localities are in Sydney (and mainly in the south-western suburbs), the central coast and Wollongong. Moody's said arrears on low doc loans were 0.84 per cent across all securitised loan pools reviewed by the firm, and compared with arrears of 0.34 per cent of fully verified loans. Borrowers on variable rate loans are also more likely to be in arrears (0.48 per cent of all loans) compared with arrears of 0.12 per cent for those on fixed rate loans. A slightly higher proportion of borrowers with interest only loans are in arrears compared to the norm.
Source: The Sheet