Australia's housing market may be frothy, but it doesn't appear likely to be a bursting bubble anytime soon, if the comments of a big mortgage broker are anything to go by.
Home prices have spiked higher in recent years amid record low interest rates, but John Flavell, CEO of Mortgage Choice, said that wasn't impinging much on his customers' ability to keep up with their payments.
"As the cash rate has come down, our customers have maintained their repayments and amortized their debts at an accelerated rate. The arrears rate on the portfolio was also diminishing in line with that," he told CNBC's "Rundown."
Flavell noted that Mortgage Choice represented around 5 percent of Australia's mortgage market, while the 24 lenders on its panel likely made up at least 85 percent of the market.
If anything, persistently low interest rates appeared to be spurring pre-payments,UNLOCK he noted.
"The proportion of our customers that are in advance by one month or more on their mortgage has grown in recent times from 24 percent to over 27 percent," he said. "Typically, they're in advance by nine months or so."
That was despite continued rises in Australia's home prices.
CoreLogic data showed the home price index for Australia's capital cities rose 0.8 percent in July from June, when it rose 0.5 percent on-month, and was up 6.1 percent on-year, Reuters reported.
The median housing price in Sydney was 12.2 times more than the median annual household income in the third quarter of 2015, up from 9.8 in all of 2014, according to data from the most recent Demographia International Housing Affordability Survey. In Melbourne, the median home price was 9.7 times median income in 2015's third quarter, up from 8.2 across 2014, the data show.
Some data have, however, indicated mortgage arrears might be rising. Standard & Poor's said in mid-July that the number of mortgages in arrears rose in May for the seventh straight month, based on data for residential mortgage-backed securities, according to media reports.
In the fiscal first half of 2016, ended March 31, the percentage of big lender Westpac's mortgage book that was 90 days past due and impaired rose to 0.46 percent, from 0.38 percent in the previous half, data compiled by Deutsche Bank showed.