DEFAULT (FINANCE) – AUSTRALIA

Housing lot defaults hit 25 per cent as finance hard to secure

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 31 : 7-Feb-19

Satterley Property Group CEO Nigel Satterley says the default rate among buyers of housing lots in Melbourne is now 20 to 25 per cent, compared with just five per cent in late 2017. He adds that Perth and Sydney boast default rates of around 35 per cent and 15 per cent respectively. Satterley attributes the high level of defaults to factors such as tightened access to credit for both local and overseas buyers. Simonds Group CEO Kelvin Ryan notes that there has been a spike in the number of housing lots that are been offered for sale on the secondary market.

CORPORATES
THE SATTERLEY PROPERTY GROUP PTY LTD, SIMONDS GROUP LIMITED – ASX SIO, OLIVER HUME REAL ESTATE GROUP PTY LTD, RED23 PTY LTD, GUMTREE.COM AUSTRALIA PTY LTD

Home buyers falling behind in repayments

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Original article by Michael Roddan
The Australian – Page: 21 : 20-Jul-18

The Northern Territory had the highest percentage of mortgage borrowers who were in arrears among all Australian states and territories in May 2018, according to Standard & Poor’s. Victoria and Western Australia recorded a decline in borrowers who were in arrears, while New South Wales and Queensland recorded an increase. Overall, the number of Australian borrowers falling behind on their mortgage repayments increased by two basis points to 1.38 per cent in May.

CORPORATES
STANDARD AND POOR’S (AUSTRALIA) PTY LTD, RESERVE BANK OF AUSTRALIA

Rate hikes starting to take a toll on borrowers

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Original article by Michael Roddan
The Australian – Page: 19 & 23 : 21-Jun-17

The proportion of Australian home loan customers that are in arrears rose by five basis points to 1.21 per cent in April 2017. Erin Kitson of Standard & Poor’s says moves by lenders to raise mortgage interest rates independently of the Reserve Bank in recent months was a major contributor to this trend. The rate rises have been prompted by a regulatory crackdown on interest-only mortgage loans. Meanwhile, Australian Securities & Investments Commission chairman Greg Medcraft has stressed the need for responsible lending.

CORPORATES
STANDARD AND POOR’S FINANCIAL SERVICES LLC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CANSTAR PTY LTD, ST GEORGE BANK LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, SOCIETE GENERALE SA

Mortgage stress strikes bush, city amid fears of an interest rate hike

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Original article by Michael Bennet
The Australian – Page: 13 & 18 : 21-Dec-16

Standard & Poor’s has reported that the number of Australian mortgage borrowers in arrear rose in October 2016. Digital Finance Analytics has identified the 20 postcodes across Australia that boast the highest level of mortgage stress. Many of these are in regional areas, although the list includes a number of suburbs in major capital cities. Martin North of DFA says the outlook for interest rates will determine whether there is an increase in home loan arrears and defaults. He anticipates that the cash rate will rise by 50 basis points in 2017.

CORPORATES
DIGITAL FINANCE ANALYTICS, STANDARD AND POOR’S FINANCIAL SERVICES LLC, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, ALLIANCEBERNSTEIN HOLDING LP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF QUEENSLAND LIMITED – ASX BOQ, CLSA AUSTRALIA PTY LTD

Developers risk $100k loss on each apartment: report

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 37 : 24-May-16

Secret Agent director Paul Osborne notes that there is growing concern among apartment developers that some buyers will default prior to settlement. He says this has been prompted by moves by the banks to restrict lending to offshore property investors. Secret Agent, a buyers’ advocate firm, estimates that an off-the-plan developer could lose more than $A100,000 on a two-bedroom apartment in Melbourne if the buyer defaults.

CORPORATES
SECRET AGENT PROPERTY SERVICES, MACQUARIE BANK LIMITED – ASX MBL, CBRE PTY LTD, OLIVER HUME REAL ESTATE GROUP PTY LTD, CORELOGIC AUSTRALIA PTY LTD

Small miners close to default: RBA

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Original article by Geoff Winestock, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 19-Oct-15

The Reserve Bank of Australia’s latest Financial Stability Review warns that many smaller resources groups are close to defaulting on debt repayments. The central bank says the number of such companies that are at risk of default has reached its highest level since the global financial crisis. Few junior miners have collapsed in 2015, although the outlook for some is uncertain, and several mining services firms have been placed in administration.

CORPORATES
RESERVE BANK OF AUSTRALIA, MIRABELA NICKEL LIMITED – ASX MBN, ATLAS IRON LIMITED – ASX AGO, EMECO HOLDINGS LIMITED – ASX EHL, TERMITE RESOURCES NL, WESTERN DESERT RESOURCES LIMITED, PLUTON RESOURCES LIMITED – ASX PLV, BANDANNA ENERGY LIMITED – ASX BND, WDS LIMITED – ASX WDS, BIG RIM PTY LTD, SARGENT, HEAVY HAULAGE AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO

Inner-city suburbs risk mortgage default, says NAB

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Original article by Clancy Yeates
The Australian Financial Review – Page: 1 & 6 : 29-Sep-15

National Australia Bank has identified about 80 postcodes across Australia where it will restrict loan-to-valuation ratios due to concerns about the potential for home loan borrowers to default. Home buyers in some 40 postcodes are regarded as being particularly at risk of default, and home loan borrowers in these postcodes will require a minimum deposit of 30 per cent. While many of the postcodes are in mining areas, the list also includes 34 in Sydney and five in Melbourne, and the CBDs of all five major capital cities.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HOMELOANEXPERTS.COM.AU, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY