Deferrals easing
Mortgage payment deferrals have declined from 11 per cent ($195 billion) in June to 7.4 per cent ($133 billion) in September 20290, according to APRA's figures.
There was a notable monthly swing towards deferrals expiring in September.
Source: APRA
Presumably banks and regulators would feel a whole lot happier with the world if non-performing loans were in a 2 to 3 per cent range before some kind of normality resumes.
The trend has been consistently positive over the past four months.
The good news is that more timely data from the Reserve Bank and ANZ suggests that the major improvement began to take hold through October, so we might expect to see a more substantial reduction reported next month.
Source: APRA
Victoria has the highest share of housing loans deferred by state, at well above 8 per cent, but all states and territories reported a marked reduction in September.
New South Wales and Queensland look set to see deferrals fall below 5 per cent in October.
The lowest impact has been seen in Canberra, Tasmania, and South Australia.
