Australian Housing Dynamics and Affordability
AUSTRALIAN MORTGAGE STABILITY
OFFSET BALANCES AND SMALL SHADOW BANKING SECTOR
HOUSEHOLD MORTAGE BUFFERS¹
NON-BANK HOUSING CREDIT AND RMBS ISSUANCE²
•
mths
Aggregate
Distribution of loans**
By months of prepayments
Investor and/or fixed rate
loans***
%
%
Estimated non-bank share of outstanding housing credit*
1%
10
10
36
36
Number of months
(LHS)
New loans
Other
ம்
24
12
Share of gross housing credit
(RHS)
L L
2009
2014
2019 0 to
1 to 6 to 12 to 24+
<1 <6 <12 <24
Months
Available redraw plus offset account balances
As a share of the total number of loans as at June 2019
These loans have features that discourage prepayments
Sources: APRA; RBA; Securitisation System
5
24
$b
Non-bank Australian RMBS issuance**
$b
20
20
12
15
15
10
10
5
сл
10
2003
2007
2011
2015
2019
As at year-end
2019 year to date
Sources: APRA; RBA
Aggregate buffers of 16.5% of outstanding mortgage balance or
2.5 years scheduled payments (at current interest rates)
Of those with <1 month buffer, this includes
•
Investor mortgages who have tax incentives not to repay
tax deductible debt early
Fixed rate mortgages
Sources: 1. RBA. Financial Stability Review, October 2019 2. RBA. Financial Stability Review, April 2019
ANZ
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