Since May, in the fastest tightening pace in its history, the RBA has increased the cash rate to 2.35% and has flagged more ahead. While these rate rises are being passed on to borrowers on variable rate mortgages with the average interest rate for a prime borrower in the GCI portfolio at circa 4.50%, we are not witnessing stress in the borrower’s payment habits. In fact, quite the opposite — 90+ Days arrears have fallen from 37bps at the start of the year to a very low 23bps.
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