Search: borrower
RBA Glossary definition for borrower
borrower – A person or entity that incurs a debt to a lender on agreed terms.
Search Results
The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis
22 Jul 2020
RDP
2020-03
My results are broadly consistent with the double-trigger hypothesis. Ability-to-pay factors, such as regional unemployment rates and borrowers' repayment-to-income ratios, are found to be correlated with
https://www.rba.gov.au/publications/rdp/2020/2020-03.html
The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis
22 Jul 2020
RDP
2020-03
With only the second trigger, the borrower can continue to repay their mortgage. ... size of the shock does not exceed the borrowers' ability-to-pay threshold.
https://www.rba.gov.au/publications/rdp/2020/2020-03/full.html
Results
22 Jul 2020
RDP
2020-03
Relative to the median borrower, borrowers who have ever had a buffer of over six months were 67 per cent less likely to enter 90+ day arrears, while a borrower who ... whether a borrower is able to avoid foreclosure by selling the property themselves.
https://www.rba.gov.au/publications/rdp/2020/2020-03/results.html
Discussion
22 Jul 2020
RDP
2020-03
Borrowers in metropolitan and non-metropolitan regions may vary along characteristics other than those captured in the models. ... Perhaps these borrowers had other assets with positive equity, and wished to avoid foreclosure due to full recourse.
https://www.rba.gov.au/publications/rdp/2020/2020-03/discussion.html
Estimation Strategy
22 Jul 2020
RDP
2020-03
size of the shock does not exceed the borrowers' ability-to-pay threshold. ... Various loan-level controls are also included, such as borrower and loan characteristics.
https://www.rba.gov.au/publications/rdp/2020/2020-03/estimation-strategy.html
Stylised Facts
22 Jul 2020
RDP
2020-03
In Australia, lenders issue borrowers with a notice of default once a loan enters 90+ day arrears (ASIC nd). ... Lenders will also typically delay legal proceedings when borrowers provide evidence that they are in the process of selling their property.
https://www.rba.gov.au/publications/rdp/2020/2020-03/stylised-facts.html
Non-technical summary for ‘The Determinants of Mortgage Defaults in Australia – Evidence for the Double-trigger Hypothesis’
22 Jul 2020
RDP
2020-03
With only the second trigger, the borrower can continue to repay their mortgage. ... Increases to required loan repayments also increased the probability of borrowers entering arrears.
https://www.rba.gov.au/publications/rdp/2020/2020-03/non-technical-summary.html
Introduction
22 Jul 2020
RDP
2020-03
With only the second trigger, the borrower can continue to repay their mortgage. ... Variables that reduce borrowers' ability to service their mortgages substantially increase the probability of entering arrears.
https://www.rba.gov.au/publications/rdp/2020/2020-03/introduction.html
What Can Previous Research Tell Us?
22 Jul 2020
RDP
2020-03
They estimate a multinomial logit for whether borrowers in arrears go on to foreclose or to cure. ... Australia has full recourse loans, which raises the cost of defaulting for borrowers that have other assets.
https://www.rba.gov.au/publications/rdp/2020/2020-03/what-can-previous-research-tell-us.html
Data Description
22 Jul 2020
RDP
2020-03
Around 120 data fields are collected for each loan, including loan characteristics, borrower characteristics and details on the property underlying the mortgage. ... The scheduled loan balance differs from the current loan balance by abstracting from any
https://www.rba.gov.au/publications/rdp/2020/2020-03/data-description.html