Search: borrower
RBA Glossary definition for borrower
borrower – A person or entity that incurs a debt to a lender on agreed terms.
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The Effect of Mortgage Debt on Consumer Spending: Evidence from Household-level Data
1 Jul 2019
RDP
2019-06
The scheduled balance is the total amount that the borrower is contracted to repay at any given time based on this formula. ... But given the capacity to prepay, most borrowers have an actual mortgage balance that is lower than the scheduled balance.
https://www.rba.gov.au/publications/rdp/2019/2019-06/full.html
Appendix B: Institutional Features of the Australian Mortgage Market
10 Jul 2019
RDP
2019-06
Funds deposited into an offset account reduce the borrower's net debt and the interest payable. ... A redraw facility enables the borrower to withdraw principal payments that they have made ahead of the required schedule.
https://www.rba.gov.au/publications/rdp/2019/2019-06/appendix-b.html
Data
10 Jul 2019
RDP
2019-06
The scheduled balance is the total amount that the borrower is contracted to repay at any given time based on this formula. ... But given the capacity to prepay, most borrowers have an actual mortgage balance that is lower than the scheduled balance.
https://www.rba.gov.au/publications/rdp/2019/2019-06/data.html
Introduction
10 Jul 2019
RDP
2019-06
We do not find that any specific mechanism, such as financing constraints or precautionary saving, is driving the effect; instead, it appears to be pervasive across all mortgage borrowers, even households
https://www.rba.gov.au/publications/rdp/2019/2019-06/introduction.html
Does Mortgage Debt Affect Spending?
10 Jul 2019
RDP
2019-06
The instrument should therefore be correlated with outstanding mortgage debt but uncorrelated with differences in spending for borrowers in the same postcode other than their level of debt.
https://www.rba.gov.au/publications/rdp/2019/2019-06/does-mortgage-debt-affect-spending.html