Reserve Bank of Australia's Christopher Kent, Assistant Governor (Financial Markets), speaks at the Moody's Conference

  • Says there is a large share of both owner-occupier and investor loans with current loan-to-valuation ratios between 75 and 80%
  • Investors have a larger share of outstanding loans with current LVRs of 75% or higher
  • For both investor and owner-occupier loans, adjusting for offset balances leads to only a small change in the share of loans with current LVRs greater than 80%
  • This suggests that borrowers with high current LVRs have limited repayment buffers
  • Banks' non-performing housing loans have increased a little over recent years; however, at around 3/4 of 1% as a share of all housing loans, non-performing loans remain low and below the levels reached following the global financial crisis
  • Arrears have risen more in regions experiencing weak economic conditions over recent years

(quick summary via Bloomberg)

Full text: Some Innovative Mortgage Data

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AUD little changed, there isn't too much in the speech to rattle the market.

Updates: