Mortgage stress expected to rise in 2016

Delinquencies and defaults on Australian mortgages "will increase slightly from their current low levels, owing to below-trend economic growth," said Moody's Investors Service yesterday.

Worsening arrears are hitting the major banks more than lesser lenders. For major banks, Moody's said the proportion of home loans that are 30 days or more past due increased 0.21 percentage points to 1.15 per cent.

Moody’s tracks arrears on mortgages funded by Residential Mortgage Backed Securities.

Source: Banking Day