Mortgage problems growing
The number of borrowers falling behind with their mortgage repayments or in default on their home loan is rising as interest rate rises begin to impact on the housing market. Moody's Investors Service said late payments of more than 30 days on top-rated home loans increased to 1.34 per cent in the March quarter, from 1.1 per cent in December.
Delinquencies greater than 30 days on mortgages with a higher risk rating crept up to 13.02 per cent in the March quarter, from 12.13 per cent, the figures show. Moody's analyst Ryan Lu said six consecutive official interest rate rises since October had started pressuring mortgage payments. ”At the same time, a seasonal upward trend in delinquencies – due to holiday spending during Christmas and the New Year – is also pushing the arrears level up,” he said yesterday.
Source: Sydney Morning Herald