Arrears ease
30-plus day mortgage arrears fell again from 1.49 per cent to 1.41 per cent in August 2019, according to S&P Global's Prime SPIN index for Australia.
While arrears often decline in August, the magnitude of the improvement suggests that interest rate and tax cuts have flowed through to lower arrears, according to S&P.
While there remain some residual 90-plus day arrears, especially in the resources jurisdictions, 30-plus day arrears are once again approaching record lows at just 0.34 per cent.
Arrears improved significantly across every state and territory in the month of August.
Meanwhile, non-conforming and non-bank originated loans saw arrears approaching record lows.
Thus while mortgage repayments often remain the same, there's some solid evidence here to show that rate and tax cuts have eased the mortgage burden of households successfully.
Good news, and runs contrary to much of the alarmist reporting out there.
