Who's behind?
There are some signs of stress in the mortgage belt, but mainly the mortgage arrears have come about in relation to high-rise units in the inner cities, in particular where investors are grappling with rental vacancies.
Here are a few choice graphics from S&P Global's latest report:
30+ day arrears remain relatively low in Aussieland (and there's also far more prepayment in Australia than in other countries - it's one of our pressure release valves).
Generally low interest rates are helping prime borrowers through the transition period.
Non-conforming arrears are well below where they were in cycles past.
There are some still residual mortgage deferrals in Victoria, resulting from the long lockdown.
Of all the mortgage deferrals seen over the past year, about 10 to 15 per cent are expected to be transferred to hardship arrangements, although the expectation is that there will be few foreclosures.
But overall, not too bad, and most have returned to their normal repayment schedules as the economy reopens.
