Home News Two Melbourne suburbs suffer from high mortgage delinquency

Two Melbourne suburbs suffer from high mortgage delinquency

Font size :
While most residents in the state of Victoria are keeping in step with their home loan payments, two suburbs on Melbourne's fringes have been declared to be among the worst postcodes in Australia in terms of mortgage delinquency.

According to Moody's Investor Service Australia Residential Mortgage Delinquency Map, the delinquency rates in the suburbs of Burnside and Craigieburn rose by 0.76 and 0.77 per cent, respectively, from November 2014 to November 2015. They join the ranks of postcodes in Queensland and Western Australia—the two states hardest hit by the slowdown of Australia's resource sector—as having the highest mortgage delinquency rates in the country.

Census data showed that those living in the said suburbs were mostly young families that spend a high proportion of their income on mortgages and rent. Hence, they are more susceptible to economic issues, especially rising interest rates.

"Often people living on the fringe are much more vulnerable in terms of employment opportunities, with more people in part-time and casualised employment," said Pat O'Neill, senior advisor at Brotherhood of St Laurence. "The picture is that they are living perilously close to the edge and just weeks away from potential disaster."

Indeed, the people in Craigieburn and the entire Hume region had struggled with mortgage stress for quite some time. The closing of the Broadmeadows Ford car manufacturing plant had a huge impact in their source of income, as well as the number of people in casual jobs and the overcommitment to mortgages in a low-interest rate environment.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Friday, Aug 18, 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