Highlights of the Spotlight include:
- Only 2% of applications for hardship assistance are due to rising interest rates alone;
- Early term delinquencies (within 12 months) by First Home Buyers down by 40% between January 2007 and March 2008;
- A strong correlation has emerged between rates of delinquency, housing price appreciation and levels of unemployment, which have seen stress in particular pockets of NSW.
- It is the total level of consumer debt which makes borrowers vulnerable to small changes in interest rates, which impact credit cards, personal loans and other forms of credit, on top of mortgage repayments.
- Genworth has recently seen a slow rise in hardship applications, although application numbers are not abnormal. The current spike in applications for Hardship Solutions is typical for this time of the year when the full brunt of Christmas is realised.
- Contrary to the belief of a large portion of Australian borrowers, the last thing a lender wants is to throw them out of their homes.
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