Debelle analyses impact of mortgage arrears

Guy Debelle
Guy Debelle
RBA

The impact of tighter lending standards may not show up in the central bank’s data regarding mortgage arrears, according to the Reserve Bank of Australia’s (RBA) deputy governor.

Speaking in Sydney on November 15, Guy Debelle noted newer loans tended to have lower rates of arrears than older loans. “When credit growth is higher, the share of new loans also tends to be higher, so the arrears rate tends to be lower,” he said. As a result, discerning the impact of tighter lending in “the raw data”

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