Equifax, which holds credit data on almost 20 million Australians, says early warning signs for a tougher period for banks are emerging, including a spike in demand for credit cards and personal loans in the last quarter.
“As mortgages become a higher percentage of cash outflows, it is just putting pressure on everything else and is hurting those with lower buffers,” Ms Nelson said in an interview in Equifax’s new North Sydney office.the chances of the RBA hiking interest rates on Melbourne Cup Day rose after the inflation print last weekCredit quality will be a focus during the big bank reporting season over the coming fortnight, which kicks off with Macquarie’s results on Friday.
Equifax figures show an acceleration in early mortgage delinquency as well. The number of accounts overdue by between 30 and 90 days is 47 per cent higher than 12 months ago, while the number of mortgage borrowers between one and 29 days overdue is up 40 per cent on the same time last year. Mortgage repayments more than 90 days late rose 9 per cent year-on-year; overall, this represents just 0.35 per cent of accounts.
were reducing consumption, sentiment around financial health had declined, and the frequency of Google searches relating to financial stress had spiked to the highest level since the start of the pandemic.