Mortgage arrears a cause for concern, says ANZ
Article by Mozo
The number of people who have fallen into arrears on their mortgages is creating a cause for concern, according to ANZ Bank.
Philip Chronican, the chief executive of ANZ's Australian operations, expressed his worries while attending a business conference.
"Household arrears are a concerning trend. It is a problem that is going to stay for a while," Mr Chronican said.
He added that although the levels are high they are still lower than in many other major economies.
The cost of homes is also likely to remain weak, he said, as the price of properties had doubled in ten years, only to slip significantly in the past few months.
Rises in the rate of interest would add to the difficulties being faced as the cost of properties struggled to recover.
A recent study from CoreData found that many Aussies are opting to put their money into savings accounts rather than investing their funds.