The central bank has unpacked the main drivers behind the recent increases in home loan arrears.
In its most recent RBA Bulletin, the Reserve Bank of Australia (RBA) has outlined the main drivers behind housing loan arrears based on insights from bank liaison.
According to the RBA, borrowers falling into arrears are due to unexpected shocks resulting in a loss of income or an unexpected pressure on household budgets.
The central bank has categorised these shocks into two factors: idiosyncratic factors and macro-economic factors.
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Tags: arrears, interest rates, mortgage