Investment loans excel on arrears
Lending for residential investment may be bouncing back in Australian financial circles for sound reasons. Home loans for investment exhibit an appealing credit quality metric, on an industry-wide basis.Investment loans are the best, with the lowest arrears in what is mostly a prime form of credit.Moody's Investors Service included a telling chart on Australian home loan arrears in a global survey it ran earlier this year, and reported in detail at the end of last week.Baldly put, investment loan arrears are half the level of arrears seen on owner-occupied mortgages.A worried APRA put the lid on investment lending, but it's found one bounce and may well find more among mortgage funders hunting for new business.