Loan deferrals fall from highs

  • By AB+F Editorial

APRA’s latest data has revealed that home loan deferrals have fallen from their highs a few months ago.


APRA’s data found that home loan deferrals dropped to $68.2 billion or 3.9 per cent of the loan book in October, down from $195 billion (9 per cent) in August
.
SME loan deferrals dropped to $14.3 billion or 4.5 per cent down from 16.2 per cent in August.

The risk of large numbers of distressed properties hitting the market once deferral holidays expire in March 2021 has diminished significantly, according to CoreLogic head of research Tim Lawless.

APRA said that exits from deferral continued to outweigh new entries for the fourth straight month in October, with $100 billion in loans expiring or exiting deferral and $12 billion entering or being extended.

“The total value of loans subject to deferral more than halved over the month to October, with the pace of exits increasing significantly,” APRA said.

AMP had the highest level of mortgage deferrals followed by Bank of Queensland and Suncorp.

Although it seems, BOQ has been able to successfully help its borrowers wind back their deferrals.