Australian Housing Dynamics and Affordability slide image

Australian Housing Dynamics and Affordability

AUSTRALIA HOME LOANS PORTFOLIO DYNAMICS HOME LOANS REPAYMENT PROFILE1,2 76% of accounts ahead of repayments 21% 20% 27% HOME LOANS ON TIME & <1 MONTH AHEAD PROFILE 1,2 % composition of accounts (September 19) 38 37 Investment: 5 Interest payments may receive negative gearing/tax benefits New Accounts: Less than 1 year old Structural: Loans that restrict payments in advance. E.g. fixed rate loans Residual: Less than 1 month repayment buffer 21 19 9% 6% 6% 7% 12 14 4% 27 32 Overdue On Time <1 month 1-3 months 3-6 months 6-12 months 1-2 years ahead ahead ahead ahead ahead >2 years ahead Sep-18 Sep-19 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 DYNAMIC LOAN TO VALUE RATIO3,4,6,7 % of portfolio 60 50 40 30 20 10 0 0-60% 61-75% Mar-17 Sep-17 76-80% Mar-18 Sep-18 81-90% Mar-19 NEGATIVE EQUITY Net of offset balances Represents 4.8% of portfolio Skew to mining states - WA, QLD & NT represent 65% of negative equity 59% ahead of repayments 47% with LMI 91%+ DLVR Total Portfolio by State by FUM 6% 6% 13% 30% 16% 16% 32% • 26% 33% 22% 91-95% 96-100% 100%+ Sep-19 Sep-19 Sep-19 VIC/TAS NSW/ACT QLD WA SA/NT 1. Includes Non Performing Loans 2. % of Owner Occupied and Investment Loans that have any amount ahead of repayments. Includes Offset balances. Excludes Equity Manager. Includes Non Performing Loans 3. Includes capitalised LMI premiums 4. Valuations updated to Aug'19 where available 5. The current classification of Investor vs Owner Occupier, is based on ANZ's product category, determined at origination as advised by the customer and the ongoing precision relies primarily on the customer's obligation to advise ANZ of any change in circumstances 6. Historical DLVR has been restated as a result of enhancements to methodology 7. Includes Non Performing Loans and excludes accounts with a security guarantee ANZ 88
View entire presentation