ABC The Business Does Mortgage Stress

Good segment from the ABC, in which UBS chief economist George Tharenou says house prices are going to fall because the royal commission will make banks lift their lending standards, making it much harder for people to get credit and be able to bid up prices. As we have already said, its all about credit!

Mortgage Stress Up In March 2018

Digital Finance Analytics (DFA) has released the March 2018 mortgage stress and default analysis update. Across Australia, more than 956,000 households are estimated to be now in mortgage stress (last month 924,500). This equates to 30.0% of households. In addition, more than 21,000 of these are in severe stress, no change from last month. We … Continue reading “Mortgage Stress Up In March 2018”

Mortgage Stress Feb 2018, Refinancing Helps, But Still Higher

Digital Finance Analytics (DFA) has released the February 2018 mortgage stress and default analysis update. We analyse household cash flow based on real incomes, outgoings and mortgage repayments, rather than using an arbitrary 30% of income. Across Australia, more than 924,500 households are estimated to be now in mortgage stress (last month 924,000). This equates … Continue reading “Mortgage Stress Feb 2018, Refinancing Helps, But Still Higher”

Fresh Warnings Issued Over Mortgage Stress

From Mortgage Business. Several industry participants have voiced concern over mortgage stress and the rising risk of defaults, as wage growth fails to keep pace with the costs of living. Approximately 51,500 borrowers could be at risk of defaulting on their mortgages in the coming year, with over 30 per cent of Australians experiencing mortgage … Continue reading “Fresh Warnings Issued Over Mortgage Stress”

Brisbane Area Mortgage Stress Mapping

I was asked recently to show the current mortgage stress footprint in the Brisbane area. Ahead of the February stress modelling update, next week, this is the current situation. Remember we are looking at stress on a cash flow basis, (money in, money out) and some households may have access to savings or credit cards … Continue reading “Brisbane Area Mortgage Stress Mapping”

The RBA On Household Indebtedness and Mortgage Stress

Michele Bullock, Assistant Governor (Financial System), spoke at the Responsible Lending and Borrowing Summit.  She downplayed the financial stress in the system and concluded “while there are some pockets of financial stress, the overall level of stress among mortgaged households remains relatively low”. Of course, our own mortgage stress surveys tells a different story, but … Continue reading “The RBA On Household Indebtedness and Mortgage Stress”

Mortgage Stress Still With Us In 2018

Digital Finance Analytics has released the January 2018 mortgage stress and default analysis update. Across Australia, more than 924,000 households are estimated to be now in mortgage stress (last month 921,000). This equates to 29.8% of households. In addition, more than 20,000 of these are in severe stress, down 4,000 from last month. In this … Continue reading “Mortgage Stress Still With Us In 2018”

Top 10 Mortgage Stress Countdown At December 2017

Following our monthly mortgage stress post, released yesterday, we have updated our video which counts down the most stressed households across the country. As normal, there are some changes from last month, as conditions vary across the states. But overall, we see relatively more stress in Victoria and New South Wales.  We will count down … Continue reading “Top 10 Mortgage Stress Countdown At December 2017”

Mortgage Stress to Trigger Rise in Defaults, says Analyst

From The Adviser. Defaults are expected to rise this year amid new data which reveals that almost a million Australians are under mortgage stress. Digital Finance Analytics (DFA) has released its mortgage stress and default analysis for the month of December, revealing that over 921,000 households (29.7 per cent) are under “mortgage stress”, with 24,000 … Continue reading “Mortgage Stress to Trigger Rise in Defaults, says Analyst”