In its latest Financial Stability Review, the RBA noted that “real disposable incomes have stabilised at around pre-pandemic levels, supported by Stage 3 tax cuts and easing inflation”.
As a result, household resilience is improving. Though debt servicing remains high, most home loan borrowers are coping. Only around 3% are estimated to be experiencing a cash flow shortfall, and the share of borrowers at greater risk has dropped to around 1%.
“The share of mortgagors that has fallen behind on their loan repayments due to the challenging environment remains limited, and the vast majority of borrowers continue to service their loans on schedule,” said the RBA, with arrears rates stabilising near pre-pandemic levels.
Looking forward, the RBA’s central forecasts suggest that real wages will rise, with lower interest rates expected to support borrowers’ cash flows.
For homeowners considering refinancing, adjusting their loan structure or simply planning ahead, now could be a good time to reassess options with the support of your mortgage broker.
If you would like to assess your refinancing or other home loan options, Mortgage Advice Bureau Sydney can help. Click here to discuss your scenario with a mortgage broker.