This suggests that borrowers and lenders are adjusting to the range of policy changes as anticipated, and that financial vulnerabilities are beginning to ease. Growth in household credit has slowed, and the household debt-to-income ratio is edging lower.
We see an improvement in the quality of new uninsured mortgages, resulting in a smaller proportion of these households becoming highly indebted.5 What I mean by highly indebted is households with loan-to-income ratios above 450 per cent. These are early positive signs, and we will have an even better view of developments as the data come in.