More Aussies falling behind on mortgage

More Australian home owners fell behind with their mortgage repayments in October as the Reserve Bank began to raise rates.

Arrears on residential mortgage loans rose to 1.27 per cent in October according to Standard & Poor’s Ratings Services, up from 1.25 per cent one month earlier.

3.51 per cent of borrowers with low-documentation home loans are behind on repayments, up from 3.37 per cent in September while arrears on sub-prime loans dipped to 11.2 per cent from 11.49 per cent.

Standard & Poor's credit analyst Vera Chaplin said arrears might worsen due to a sluggish economic recovery interest rate rises since October 2009 by the Reserve Bank of Australia.

Source: The Australian