The Reserve Bank of Australia (RBA) has found that home buyers in parts of Sydney and Melbourne are struggling with increases in loan repayments after three interest rate rises last year and falls in the values of their properties. The RBA is concerned by a significant and growing number of mortgagee sales. Mark Armstrong, Property Planning Australia director, which advises on mortgage finance, said that parts of the Melbourne property market were similar to Sydney's south-west. 'What we're seeing is a strong correlation between mortgagee-in-possession sales and people who have been on low-doc loans,' Mr Armstrong said. 'It's the new estate areas.'
Australian lenders are fighting to retain or boost their market share, despite evidence of mortgage stress. The major banks are predicting a rebound in mortgage lending this year as fears of further interest rate rises fade.............Details
Increasing numbers of mortgage delinquencies have prompted Genworth Financial to contact clients directly and implement workout strategies.............Details
Basic home loans used to be popular with first home buyers and low income earners but due to improved features they are enjoying a wider popularity.............Details
