MORTGAGE LOANS – AUSTRALIA

Home loan arrears hit five-year high

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 4 : 19-Sep-17

The percentage of Australian mortgages on which a payment is more than 30 days overdue stood at 1.62 per cent in May 2017, according to Moody’s. This figure represents the highest level of mortgage arrears in five years, with arrear rates at record levels in South Australia, Western Australia and the Northern Territory. Arrear rates declined in both New South Wales and Victoria.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD

Wealthy carrying big debt, says ABS

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Original article by Jacob Greber
The Australian Financial Review – Page: 9 : 14-Sep-17

The Australian Bureau of Statistics estimates that the proportion of households that are overindebted rose from 21 per cent in 2003-04 to 29 per cent in 2015-16. Chief economist Bruce Hockman says the mean household debt increased by 83 per cent in real terms over this period, while mean asset value and gross income rose by 49 per cent and by 38 per cent respectively. Hockman adds that 47 per cent of the nation’s wealthiest households that have an outstanding property loan are overindebted.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

‘Liar loans’ pumped up house prices

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 1 & 8 : 12-Sep-17

UBS surveyed more than 900 Australian borrowers who had taken out a mortgage loan in the year to August 2017, finding that a third had not been truthful in terms of the information on their application. UBS states that the value of so-called "liar loans" is in excess of $A500 billion, and that these loans pose threats to both the banking sector and the overall economy. The ANZ Bank had the highest number of liar loans in the UBS survey, while respondents were most likely to have understated their expenses on their application.

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, MORTGAGE AND FINANCE ASSOCIATION OF AUSTRALIA

It’s Official: Everything is happening later in life

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Sep-17

A Roy Morgan Single Source survey has found that Australians are living at home with their parents for longer than they did a decade ago. Some 58% of 18-19yr olds now live at home, compared to 54% in 2007, while 28% of 22-24yr olds live at home (up from 24% in 2007). Meanwhile, 42% of 30-34yr olds are renting, up significantly since 2007 (33%) and now 38% of 35-39yr olds are renting, up from 29% in 2007. Meanwhile, just under a third of Australians aged 30-34 have a home loan (33%), down from 43% in 2007, and 43% of 35-39yr olds have a home loan, down from 51% in 2007. The figures for 40-something Australians are little changed from a decade ago, with 51% of 40-44 yr olds now having a home loan (virtually unchanged from a decade ago). Now only 12% of 40-44yr olds own their home (down from 18% in 2007), and just 18% of 45-49yr olds own their home (28% in 2007). This trend is evident through older age groups.

CORPORATES
ROY MORGAN RESEARCH LIMITED

HSBC joins mortgage war with 3.6pc home loan

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Original article by Glenda Korporaal
The Australian – Page: 19 & 22 : 1-Sep-17

HSBC Australia CEO Martin Tricaud says the international bank intends to ramp up its local presence, with plans to expand its branch network from 31 outlets to 47 over the next two years. HSBC also aims to increase its Australian home loans business, with owner-occupiers who take out a mortgage before the end of 2017 to be offered an interest rate of 3.65 per cent. Tricaud says the Australian banking sector offers strong growth potential for HSBC, whose market share is about 1.5 per cent at present.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, HSBC BANK PLC, AUSSIE HOME LOANS LIMITED

First-home buyers back in the market

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Original article by Michael Bleby
The Australian Financial Review – Page: 8 : 10-Aug-17

Treasurer Scott Morrison and the Real Estate Institute of Australia have welcomed indications of an upturn in first-home buyer activity. Official figures show that 8,573 mortgage loans were taken out by first-time buyers in June, which is the highest level in almost three years. The total value of loan commitments to this segment of the mortgage market topped $A28.5bn in the year to June. Meanwhile, loan commitments to property investors rose by 10.5 per cent to $A152 billion in 2016-17, in seasonally-adjusted terms.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, THE REAL ESTATE INSTITUTE OF AUSTRALIA LIMITED, JP MORGAN AUSTRALIA LIMITED, SQM RESEARCH PTY LTD, POLY GROUP CORPORATION, INTRAPAC PROJECTS PTY LTD

Residential lending hits record levels

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Original article by Duncan Hughes
The Australian Financial Review – Page: 3 : 1-Aug-17

Reserve Bank of Australia figures show that there was a 7.4 per cent increase in mortgage loans to property investors in the year to June 2017. This compares with an increase of 6.2 per cent in loans to owner-occupiers. Overall, a record $A1.69 trillion worth of mortgages were active at the end of June. Martin North of Digital Finance Analytics said the figures suggest that regulatory attempts to cool the residential property market do not seem to have had any impact yet.

CORPORATES
RESERVE BANK OF AUSTRALIA, DIGITAL FINANCE ANALYTICS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, ME BANK, BANK OF QUEENSLAND LIMITED – ASX BOQ, MACQUARIE BANK LIMITED – ASX MBL, CANSTAR PTY LTD, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Mortgage stress growing: ME Bank

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Original article by Michael Bleby
The Australian Financial Review – Page: 7 : 31-Jul-17

Almost 50 per cent of Australian mortgage holders are spending more than 30 per cent of their pre-tax income on repayments, according to a survey by ME Bank. It also found that borrowers are less confident than they were six months ago about their ability to meet minimum mortgage repayments, with investors more pessimistic than owner-occupiers. Similarly, borrowers are less confident than when previously surveyed about their ability to repay more than the minimum amount on their mortgage.

CORPORATES
ME BANK, RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Where are the Biggest Mortgages in Australia?

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 31-Jul-17

A Roy Morgan Single Source survey has found that Australians have one trillion dollars in mortgage debt overall. This equates to a median outstanding mortgage of $228,800 for every owner-occupier mortgage holder. The survey, which was carried out in the six months to April 2017, also shows that Sydney has the highest outstanding mortgages, with a median home loan outstanding balance of $293,000 (up 9.4% in a year). This is followed by Perth with $279,000 (up 2.4%) and Melbourne with $243,000 (up 1.6%). Country areas in all states have lower average outstanding amounts than their capitals, with Queensland Country having the highest ($224,000).

CORPORATES
ROY MORGAN RESEARCH LIMITED

NAB acts to reduce riskiest lending

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Original article by Michael Roddan
The Australian – Page: 22 : 7-Jul-17

National Australia Bank will begin assessing the ability of interest-only mortgage borrowers to repay their loan when deciding whether to approve such applications. NAB already takes into account a customer’s loan-to-income ratio when assessing all loan applications, but it will reject applications from people with high loan-to-income ratios from 8 July. The major banks have increased the interest rates on interest-only loans in recent months.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, ING DIRECT