Good News story – home loan arrears continue to decline
There are many articles in the press that are pessimistic and depressing regarding home loan borrowers.
This article proves there is good news as well.
Australian home loan arrears fell during the month of October, continuing the trend from previous months, according to S & P Global Ratings.
Australian home loan arrears for prime residential mortgage-backed securities fell to 1.04% in October. This is below the October average of 1.13% and well below the past decade average of 1.25%.
This positive trend can no doubt be attributed to continually low interest rates and improved employment conditions.
Apart from the low arrears position, many home loan borrowers have reduced their loan terms by maintaining repayments at levels when interest rates were higher. Also many have increased the balances held in off-set accounts. Both of these are good buffers if and when economic conditions decline.
May there be more good news stories in 2018.