The Tomorrow of Mortgage Areas

Australian mortgage arrears are expected to increase nationwide in coming months as rising unemployment flows through onto debt serviceability.

Standard & Poor Global Ratings forecasts that property prices could fall 10 per cent from the onset of the pandemic, and that arrears are likely to vary by state and territory, reflecting different economic recovery paths.

Capital Economics this week maintained its own forecast that house prices across the eight capital cities will eventually fall by 8 per cent from their peak, due to expected rising unemployment and weaker consumer confidence.

Weighing in, AMP Capital chief economist Shane Oliver advised home prices could fall by around 10 per cent to 15 per cent from the April high.

Covid-19 hardship spots

S&P says mortgage payment deferrals are masking Covid-19’s true effect on arrears. – “This is because most lenders are not including loans under Covid-19 hardship arrangements in their traditional arrears reporting during mortgage-relief periods.”

The 10 worst-performing postcodes

Australia’s four major banks—ANZ, CBA, NAB, and Westpac— reported increases in non-performing ratios, highlighting the impact of Covid-19 on asset quality. Figures released Wednesday revealed gross domestic product fell by 7 per cent in the June quarter, the largest quarterly fall in GDP on record, and a bigger drop than the 6 per cent fall the market had forecast. Source : The Urban Developer
In a turbulent time, It is important to have the right mortgage broker with you when looking for the right loan. The right Mortgage Broker understands your position and finds the best loan. Next time, when you think about purchasing a property or refinancing your loan, reach us out because we have always assured our clients with the Right Solution.
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