Debt to income ratios falling

Debt ratios easing

Housing credit growth to investors fell further to a 9-month low in February, at just 0.21 per cent, as rising land taxes and mortgage rates force more landlords to sell. 

Rental vacancies thus continue to tighten to chronically low levels. 

Overall housing credit growth firmed a little at 4.2 per cent over the year.

Credit growth across the economy was 5 per cent over the year, supported by strong double-digit growth in business credit. 

Double-digit housing price inflation is far ahead of what would otherwise be supported by the credit impulse, due to record population growth, record low rental vacancies, and very low stock for sale levels. 

The household debt to income ratio declined to 1.85x, and net of mortgage offset balances is now unchanged since around 2006.

Interest payments are a different story entirely, having spiked dramatically over the past 18 months, and point to the reason why interest rates will likely by cut over the next 18 to 24 months. 

*I can't find the data for mortgage interest payments; not sure if the series was discontinued or moved elsewhere (?). 

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