If you’ve got a home loan and you live in Sydney, then unfortunately you win as belonging to the group of Australians suffering most from mortgage stress at the moment. Mortgage holders in Brisbane and Melbourne, on the other hand, are apparently in the best situation, all according to a recent Moody’s survey.
Sydney-siders with a mortgage have the highest rates of delinquency, defined in the survey as being more than 30 days behind with repayments (in other words, missing one or more mortgage repayments). When compared to the whole of Australia, New South Wales has 44 per cent of all of the country’s delinquent mortgage holders, a huge over-representation for its population.
In particular, the south-west suburbs of Sydney are where you’ll find people struggling most to pay their mortgages, particularly in the areas of Fairfield, Liverpool, Macquarie Fields, Minto and Campbelltown. Around 2.5 per cent of home loan holders in these areas are said to be behind in their mortgage repayments, or one in forty, and up to 2.77 per cent in the worst affected areas. For these people, the prospect of an interest rate rise coming soon is obviously much more serious and panic-inducing than for others.
The national average for mortgage delinquency is about half of the Sydney suburbs rate, at just 1.34 per cent. In general, loans for homes closer to the centre of the city were less likely to be delinquent than for mortgage holders living in the outer suburbs of Australian cities. Moody’s have been using a new method of research to analyse mortgage delinquency rates this time around, and they say that these figures are much more accurate than those that have been produced in the past. Accurate or not, they sound like bad news for Sydney mortgage holders, especially if the expected rate rise comes up soon.