Australian mortgage arrears slump to 1.49% in August

Western Australia got slugged the most, dipping to 2.75% from 2.91% in July.

Australian prime home loan arrears fell from 1.49% to 1.41% in August, indicating that interest rate and tax cuts are filtering through, according to S&P Global Ratings.

Arrears fell nationwide, with Western Australia recording the largest fall, slipping to 2.75% in August from 2.91% in July.

On the other hand, mortgage arrears improved for all lenders, with regional banks falling to 2.18% in the same month.

Mortgages 30-60 days in arrears are responsible for most of the improvement in August, signalling the stronger refinancing activity that has enabled more borrowers to self-manage and look for cheaper home loan rates.

S&P expects arrears to continue to lower in the short term as the most recent rate cuts start to filter through.

Photo courtesy of Pexels.com.
 

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