articles Ratings /ratings/en/research/articles/190814-australian-prime-home-loan-arrears-remained-steady-in-june-11108922 content esgSubNav
In This List

Australian Prime Home Loan Arrears Remained Steady In June


European RMBS Market Update Q3 2021

Root & Branch - November 2021: Sustainable Linked Markets


Weekly European CLO Update

Take Notes- An Overview Of The 2021 German, Swedish, And Danish Covered Bond Markets

Australian Prime Home Loan Arrears Remained Steady In June

MELBOURNE (S&P Global Ratings) Aug. 15, 2019--Australian prime home-loan arrears remained steady in June, with the Standard & Poor's Performance Index (SPIN) for Australian prime mortgages slipping 1 basis point to 1.51% from a month earlier. That's according to S&P Global Ratings' "RMBS Arrears Statistics: Australia," published today.

Arrears typically decline in June and throughout the third quarter. Mortgage arrears were up 13 basis points year on year in June and above the five-year average of 1.25%.

Arrears fell in Queensland, South Australia, Northern Territory, and Australian Capital Territory, but rose in Western Australia, Tasmania, New South Wales, and Victoria. Arrears continued to rise in Western Australia, despite a small improvement in May, increasing to 3.05% from 3.00% a month earlier. South Australia recorded the largest month-on-month improvement, with arrears falling 5 basis points to 1.52%.

Investment arrears were almost unchanged in June, falling 1 basis point to 1.47%, and owner-occupier arrears rose 1 basis point to 1.74% from a month earlier. Owner-occupier arrears have continued to rise toward their long-term peak of 1.83%, despite interest rates being around 3.00% lower. This reflects borrowers' increased debt-serviceability pressures in a low wage-growth environment.

We expect arrears to stabilize in the next quarter, in line with the seasonal pattern and assisted by cuts to interest rates and taxes. These stimuli will have a greater effect on the less-severe arrears categories, which historically have been more sensitive to interest-rate cuts. Improvements in housing market conditions also should help bolster lending conditions and improve borrowers' refinancing prospects.

We publish monthly arrears data for investor and owner-occupier loans. These data cover the entire Australian RMBS portfolio of loans.

The SPIN measures the weighted-average of arrears more than 30 days past due on residential mortgage loans in publicly and privately rated Australian RMBS transactions. We calculate the SPIN for prime and nonconforming residential mortgage loans. The indices identify the proportion of loans 31-60 days, 61-90 days, and 90-plus days in arrears. S&P Global Ratings calculates the SPIN on a monthly basis, using information provided by the issuers of RMBS transactions.

"RMBS Arrears Statistics: Australia" provides a comprehensive analysis of arrears statistics on loans underlying Australian RMBS. Part 1 and Part 2 of the report can be found at and Members of the media seeking a copy can contact Richard Noonan at (61) 3 9631 2152 or

This report does not constitute a rating action.


S&P Global Ratings Australia Pty Ltd holds Australian financial services license number 337565 under the Corporations Act 2001. S&P Global Ratings'credit ratings and related research are not intended for and must not be distributed to any person in Australia other than a wholesale client (as defined in Chapter 7 of the Corporations Act).

The report is available to subscribers of RatingsDirect at If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to Ratings information can also be found on S&P Global Ratings' public website by using the Ratings search box located in the left column at Members of the media may request a copy of this report by contacting the media representative provided.

Primary Credit Analyst:Erin Kitson, Melbourne (61) 3-9631-2166;
Secondary Contact:Narelle Coneybeare, Sydney (61) 2-9255-9838;

No content (including ratings, credit-related analyses and data, valuations, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw or suspend such acknowledgment at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, (free of charge), and and (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at

Any Passwords/user IDs issued by S&P to users are single user-dedicated and may ONLY be used by the individual to whom they have been assigned. No sharing of passwords/user IDs and no simultaneous access via the same password/user ID is permitted. To reprint, translate, or use the data or information other than as provided herein, contact S&P Global Ratings, Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-7280 or by e-mail to:

Register with S&P Global Ratings

Register now to access exclusive content, events, tools, and more.

Go Back