NSW sees drop in defaults on home loans

The number of property owners in New South Wales (NSW) defaulting on their home loans dropped during 2010, however interest rate rises caused the fall to slow towards the end of the year.

Melbourne Weekly reports the amount of mortgage repossession applications filed in the NSW Supreme Court came to 2,564 last year, down from 3,800 in 2009 and 4,000 a year earlier.

Over the first three quarters of 2010 the year-on-year decline was 37 per cent, however this slowed to eight per cent in the final three months, with interest rate rises potentially being a reason for the relative increase.

The figure is now close to the average 2,050 repossessions that occurred every year in the 1990s and substantially lower than the record high of 5,370 that came in 2006.

Last week, National Australia Bank announced it has cut the interest rate on its online home loan product to 6.99 per cent, ten days after launching it with a rate of 7.05 per cent, according to the Herald Sun.

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