Moody’s warns of rise in home loan delinquency rates

first_imgHome loan delinquency rates are lowest in suburbs within 5km of Australia’s CBDs, according to Moody’s. Image: AAP/Brendan Esposito.But the report found overall that the number of borrowers at least 30 days behind on their home loans were most likely to be found in Brisbane’s outer suburbs, 30km to 40km from the city centre, where average incomes were lower.Delinquency rates were lowest within five kilometres of Australia’s CBDs.“Average incomes are lower in outer suburbs than in inner-city areas, while mortgage loan-to-value (LTV) ratios are higher on average in outer areas and socio-economic conditions are typically weaker,” the report said.The ratings agency analysed residential mortgage-backed securities to find out which households were behind on their repayments. Home loan delinquencies are more likely to occur in Brisbane’s outer suburbs, according to Moody’s. Image: AAP/Dan Himbrechts.BORROWERS struggling to pay off investment properties account for more than half of all mortgage delinquencies within 5km of Brisbane’s CBD, a new report reveals.The report from Moody’s Investors Service also found a large chunk of those delinquencies were for loans for apartments or interest-only loans.Moody’s Investors Service associate managing director Ilya Serov warned of the possibility of a spike in the number of inner-city borrowers being unable to repay their mortgages if a prolonged downturn in property prices was to occur. At least half of all mortgage delinquencies within 5km of Brisbane’s CBD are for investment property loans. Image: AAP/Brendan Esposito.More from newsParks and wildlife the new lust-haves post coronavirus16 hours agoNoosa’s best beachfront penthouse is about to hit the market16 hours agoIn suburbs within 5 kilometres of the CBD in Sydney, Melbourne and Brisbane, at least 50 per cent of mortgages are extended for investment purposes, according to the ratings agency.“There is also a high share of interest-only loans in these areas,” Mr Serov said.“The performance of investment and interest-only loans is more sensitive to housing price declines than owner-occupier and principal and interest loans, because borrowers rely on price gains to earn a return on their investment.“Falling housing prices can also hamper borrowers’ ability to refinance such loans or extend interest-only terms.”last_img read more

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Hawkeye Harvest Food Bank to temporarily close starting next Wednesday

first_imgMASON CITY — The Hawkeye Harvest Food Bank has announced that they will be temporarily closing starting next Wednesday due to the COVID-19 crisis. The Food Bank’s Ozzie Ohl in a written statement says they are closing due to the concern for all of their volunteers who are in the high risk group of getting ill, and they don’t want to put any clients or volunteers at risk. The Food Bank will close for an indefinite time period starting next Wednesday March 25th at 4:00 PM, with the hope that they can re-open at some point next month. If anyone has not picked up their March order, they have today, Monday, Tuesday and Wednesday to do so. The Food Bank will be open from noon to 4:00 PM on Monday, Tuesday and Wednesday to help accommodate clients.last_img

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