Among the top 20 wealthy Aussie suburbs experiencing financial strain, Digital Finance Analytics (DFA) ranks Karratha households as most likely to default on mortgage repayments. The DFA estimates that 151 households in Karratha would default on their mortgage repayments in 2017, with each borrower experiencing a 6.2% probability of defaulting.
Martin North, founder and principal of Digital Finance Analytics, said the estimated default rate in Karratha for 2017 has risen from 1.7% of borrowing households in 2016.
“The reason is the incomes are under pressure, and after the mining boom we are seeing something of a correction in property values,” he told The West Australian. “Employment is under pressure and costs of living are rising fast, but the killer is the expected lift in mortgage rates.”
The data was compiled by household surveys and took into account factors such as expected rate rises and changes in employment.
After Karratha, the DFA ranked borrowing households in Mandurah (4.17%) and Mt Melville (4.16%) as second and third most likely to default on mortgage repayments. Nine of the 20 postcodes on the DFA’s list were from Western Australia and seven were from Queensland.
Collections: Mortgage News