The number of Australian home owners failing to make their mortgage payments has increased, according to the latest Fitch Ratings Dinkum Index report.
Mortgage delinquencies have increased by 3% in the December quarter, compared to the September quarter, while the number of Australian prime RMBS mortgages that fell behind in repayments between 30 and 59 days increased by 40%.
Michelle Hutchison, spokesperson for comparison site RateCity, says she’s concerned to see more borrowers missing their repayments.
"While the Fitch Ratings report states the proportion of mortgages that were 30-59 days in arrears was back to average levels, it's still surprising to see a rise given the fall in interest rates. It's likely that many of these borrowers have locked themselves into a home loan that they clearly can't afford to maintain.
"Interest rates are at record lows so if borrowers can't afford to keep their mortgage repayments on track now, they could be in serious trouble when rates rise.”