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Treasurer Scott Morrison believes it's the willingness to loan money to investors coupled with watered down regulations that is negatively impacting household debt and housing prices. (Vision courtesy ABC News 24)
World-renowned long-distance cyclist Mike Hall has been killed in an accident south of Canberra while competing in an epic race from Fremantle to Sydney.
Treasurer Scott Morrison believes it's the willingness to loan money to investors coupled with watered down regulations that is negatively impacting household debt and housing prices. (Vision courtesy ABC News 24)
The largest increase was in mortgages between one and two months in arrears, which S&P; said suggested an increase in borrowers newly in arrears.
S&P; said mortgage arrears had risen in every state and territory in January, and that it expected further increases.
S&P; said mortgage arrears had risen in every state and territory in January, and that it expected further increases. Photo: Louise Kennerley
"The high level of household debt in Australia means borrowers are more sensitive to interest-rate movements," S&P; said in a statement.
"Lenders have announced rate increases out of cycle with cash rate increases, and we expect arrears to rise further."
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The big four banks have all recently increased rates, citing increased funding costs and regulatory requirements.
South Australia recorded the largest increase in arrears from December to January, from 1.53 per cent to 1.81 per cent.
While arrears typically increase between November and April due to Christmas and summer holiday, the ratings agency said the magnitude of the latest increase was higher than in previous months.
However, it said relatively stable employment conditions would support current low levels of defaults and losses on residential mortgage-backed securities.