Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Research reveals hotspots for mortgage stress

Consumer group CHOICE has released regional data on borrowers under financial stress, with Western Sydney and West Melbourne ranking among the top spots.

The analysis by Martin North at Digital Finance Analytics and commissioned by CHOICE has marked more than 100,000 households in the top 10 suburbs in distress across NSW and Victoria.

In NSW, the number of households under distress in the top 10 suburbs totalled 63,502, while there were 70,526 in Victoria.

Nationally, the top 10 areas for mortgage stress were found to cover capital city and regional areas in NSW, Victoria, Queensland and Western Australia.

CHOICE chief executive Alan Kirkland defined the mortgage stress label as covering residents who are spending more than they are earning.

Advertisement
Advertisement

“That means that they have to make difficult choices, like whether to put food on the table or keep up with repayments. If they can’t maintain the juggling act, they risk losing their homes,” Mr Kirkland said.

Nationally, the highest-ranked area matched the postcode 2560, around the Campbelltown region in south-west Sydney, totalling 10,578 households. Following was 2170, including Casula, Liverpool and Warwick Farm in Western Sydney, with 10,002 households and 6065 in Perth, with 9,885 households.

The fourth postcode on the list was 4350, covering 9,693 households in suburbs across Queensland city Toowoomba followed by 3805 in Melbourne, with 8,919 households in stress around Fountain Gate and Narre Warren.

CHOICE is using the data as part of a push against the federal government’s plans to repeal the responsible lending laws.

Around 39,000 consumers and 125 organisations have signed an open letter organised by CHOICE, calling on politicians to retain the responsible lending obligations.

“Safe lending laws were put in place to avoid the huge damage to families and communities caused by mortgage stress – by making banks take care to avoid giving people loans they won’t be able to afford to repay,” Mr Kirkland said.

“If the government gets away with its plan to axe safe lending laws people who are desperate to get into a rising housing market will be at risk of overexposure and people who need to refinance won’t be adequately protected.”

Find out more about the top property and home buying trends in your local area at the Better Business Summit 2021. Places are limited so make sure you secure your place at the five-state event asap!

[Related: Westpac launches savings buffer for distressed borrowers]

Research reveals hotspots for mortgage stress
Research reveals hotspots for mortgage stress
mortgagebusiness

Sarah Simpkins

Sarah Simpkins is the news editor across Mortgage Business and The Adviser.

Previously, she reported on banking, financial services and wealth management for InvestorDaily and ifa.

You can contact her on This email address is being protected from spambots. You need JavaScript enabled to view it..

Latest News

The brokerage has teamed with the fintech, for the launch of a new app that will let borrowers compare pricing and environmental impact acro...

The desire to secure a mortgage has collapsed across the country, according to a new analysis from Equifax. ...

The Reserve Bank will be closely watching how households respond to higher rates as it decides its next move, ANZ senior economists have sai...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.