More Aussies struggling with mortgage repayments

Font size :
Westpac’s latest report revealed a rise in the number of Australians who cannot keep up with their mortgage payments, mostly coming from Western Australia, South Australia, and Queensland – regions that have been affected by the mining squeeze.

According to Australia’s second largest home lender, the proportion of loans at least a month behind in repayments rose to 1.39 per cent, up from around only one per cent just nine months ago. Home loans at least 90 days behind have also jumped, suggesting that owner-occupiers are in the most financial trouble. There are also more stressed assets on Westpac’s business loans.

“Sydney and Melbourne are showing signs of increasing arrears but it’s still small,” said Velocity Trade banking analyst Brett Le Mesurier. “It’s really relating to the mining states.”

For independent economist Saul Eslake, there is even the possibility that Australia’s personal debt problem would worsen.

“It could well be that the level of bad or impaired debts continues to rise especially if income growth remains as weak as it has been in recent years,” Eslake said. “Even wealthy people have limits on how much additional debt they’re willing to take on and it could be that in recent years we’ve started to approach those levels.”

RBA governor Glenn Stevens also touched on the problem, though he did not offer a solution.

“Gross public debt, if you add up all levels of government, is about 40 per cent of GDP,” he said. “We’re rightly concerned about the trajectory of that ratio into the future, but gross household debt is three times that size, it’s 125 per cent of GDP.”

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

CBA unveils new repayment simulator CBA unveils new repayment simulator

The simulator will show customers the differences between different types of repayments Read more

How to tell when a housing market is cooling How to tell when a housing market is cooling You need to check clearance rates, listings, and the price gap, among other factors ... Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Sep 26, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords