Remember those scaremongers who told us we were going to fall off a cliff in September 2020?
They were worried about all the mortgage deferrals and the government pulling back on some of its stimulus programs.
Their main concern was that they would be a swag of mortgagee sales as home owners and investors could not keep up their mortgage repayments and hold onto their propertie
While I'm on record explaining this was never going to be a concern, the latest stats clearly show there is no ticking time bomb of mortgage deferrals.
APRA (the Australian Prudential Regulatory Authority) has released data on loan deferrals to November 2020, which reveals that the number and value of deferred mortgages has continued to plunge.
And exits from deferrals continued to outweigh new entries for the fifth straight month in November, with $32 billion in loans expiring or exiting deferral and $7 billion entering or being extended.
- The number of mortgage deferrals had shrunk from a peak of 488,249 mortgages in May to 118,919 mortgages in November.
- As a percentage the share of total mortgages deferred plunged from a peak of 11% in May to just 2.8% in November.
- Not surprisingly, Victoria had the highest share of mortgages deferred in November, (the period being reported) but things have improved considerably since then.
- Victoria remains the state with the highest proportion of loans subject to deferral amongst the states and territories, with 3.2 per cent of loans deferred compared with the rest of the country at 1.7 per cent.
- Also read:Latest property price forecasts for 2024 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Sydney property market forecast for 2024
- Also read:Boom to bust: What makes property prices rise and fall
- Also read:This week’s Australian Property Market Update – Latest Data, State by State November 28th, 2023
- Also read:The Boom and Bust of our Property Cycles: A Journey Through the Investor’s Mind
