In the debate surrounding the so-called “Mortgage Cliff” and the impact of inflation and higher interest rates on households, the possibility of a strong rise in mortgage arrears has been written off in many quarters.
Yet with the release of the latest Residential Mortgage Backed Security (RMBS) data from ratings agency Fitch, that is exactly what we have seen.
“Australia’s 30+ day conforming mortgage arrears rose by 23bp qoq to 1.36% in 1Q25, while non-conforming arrears rose more sharply by 39bp to 5.32%,