RBA claims mortgage holders are getting by

by Rachel Seymour 24/04/2008

Despite recent interest rate rises, the Reserve Bank of Australia (RBA) claims the majority of homeowners are keeping pace with their mortgage repayments, with deputy governor, Ric Battellino, saying the RBA estimates just 15,000 borrowers are 90 days or more in arrears on their mortgage repayments.

 

"These are quite low numbers for a country the size of Australia," Mr Battellino said, adding to notes of his comments to the committee released on Thursday.

"From a macroeconomic perspective, there do not appear to be any major problems here.

"Indeed, given the historically low level of unemployment, it would be surprising if there was a widespread problem with housing loan arrears at present."

 

The RBA also disputes the accuracy of the current definition of mortgage stress, whereby households paying more than 30 per cent of their income towards mortgage repayments are deemed to be suffering mortgage stress. 


Join the discussion on Interest Rates - Up or Down?

source: The Age
Bookmark and Share

 

Warning: The views and opinions expressed on this web site do not necessarily represent the views and opinions of Colt Hudson Pty Ltd or those of its employees and associates. Views and opinions have been provided by members of the general public for entertainment purposes only. The information provided on this web site is general advice in nature and does not constitute financial advice . As such it has been prepared without taking into account personal circumstances, lifestyle, financial situation or needs. You should not act on any information on this site without first speaking to an authorised finance services provider.