Home loan repayments getting easier for Australians.

Article by Kevin Boyle

Dropping interest rates and stable house prices are helping to relieve the stress on Australians repaying their home loans, a new index shows.

Ratings agency Fitch recently announced that home loan borrowers falling behind on their repayments (30 plus days in arrears) had fallen to 1.36 percent in the third quarter of 2012, down 0.18 from the previous quarter. The drop is largely due to the Reserve Bank's 125 basis point cuts in 2012.

Despite the good news, not everyone is in the clear. According to Fitch, mortgages that are 90 days in the arrears are still at historical highs and self-employed borrowers are still struggling.

Credit Suisse also released a report stating that the Australian housing market is marginally over supplied. According to the report, low demand due to high prices of property and other concerns amongst potential home buyers could cause pressure on the market in 2013. Australian Property Monitors reported that home values are expected to increase as much as 5 percent in the next year, from less than 1 percent in the first 10 months of 2012.

With home loan interest rates now at low levels, Australians are also being encouraged by the Australian Government to shop around for their home loan, and switch banks if they aren't getting a good home loan deal.

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