Home owners plough cash into mortgages during lockdown (AFR)

Voluntary payments into mortgages more than doubled in July, August and September from the previous 12 months, data from non-bank lender Firstmac shows, raising the question whether consumers will save, rather than spend, extra cash handed to them in last week's budget.

Firstmac's analysis of its direct retail mortgage book shows the level of additional payments made by borrowers jumped to an average 10.2 per cent of the portfolio in the past three months, compared with the monthly average payment of 4.8 per cent last year.

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04 May 2020

Home loan relief calls push $6.8bn (The Australian)

More than half a million Australians have hit pause on $6.8bn worth of loan repayments in the past six weeks. 

The higher-than-expected take-up of repayment relief from borrowers comes as non-bank lender Firstmac revealed just over 5 per cent of mortgage holders in its $12.8bn loan book had applied for hardship arrangements.

Firstmac managing director Kim Cannon said the hardship numbers were less than the “optimistic” forecasts of 6-9 per cent, and well below the level that may result in deferred residential mortgage-backed securities (RMBS) coupon payments to investors.

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