Retail customers are going into an uncertain period in 'very robust shape,' says ANZ

Many Australian borrowers are ahead on their mortgage repayments and this should cushion them from a hard landing as interest rates rise.

The Reserve Bank of Australia has hiked the official cash rate six times in a row this year.

Many borrowers will be able to weather the changes, as about 70% of the customers with variable rates had accelerated repayments, according to Elliot. Cash-flow pressures on borrowers would be lowered as rates rise.

People used their savings to get ahead of their repayments as interest rates went down.

Half of our customers are more than two years ahead on their home loan repayments, as of today.

As interest rates go up, nothing changes for those customers. What's the reason? The amount of time they are ahead on their repayments is being reduced. The customers are in great shape.

Delinquency rates will rise over the next year due to interest rate increases, cost-of-living strains and falling property prices.

If you have a fixed rate mortgage, you could face some stress when your repayments surge in the future. Most people should be able to cope given that banks in Australia have been buffering mortgage applications.

Australian banks were told to apply a loanability buffer of 2.5 percentage points before it rose to 3 percentage points.

It has implemented a 2% buffer as part of its efforts to manage risks, such as containing a runaway housing market benefiting from historically low interest rates, and high levels of household debt. Banks made a lot of home loans.

The Reserve Bank of Australia said during its monetary policy meeting earlier this month that mortgage rate increases were close to the buffer applied.

High levels of savings and a strong labor market mitigated debt serviceability concerns, according to the central bank.

Low levels of loan arrears were caused by this and forbearance for some borrowers.

The customers of ANZ are heading into an uncertain time.

Many Australian borrowers are ahead of their mortgage repayments, and this should cushion them from a hard landing as interest rate rises.

Customers are increasing their savings and paying down their home loans in addition to other loans such as credit card loans, according to him. Customers' wages have kept up with inflation.

Our home loan book is very strong. He said that the bite will be delayed because of all those factors.

People with home loans that are 90 days past due are starting to fall.

According to a report this week, Moody's predicts that delinquencies will rise over the next year due to rising interest rates and falling property values.

Moody's said that falling house prices will make it harder for borrowers in financial trouble to sell their properties at high enough prices to repay their debt.

In the September quarter, Moody's stated that house prices declined in all three of Australia.