mortgage failure

Australia’s hotspots for mortgage failure revealed

PHOTO: Digital Finance Analytics calculated that as many as 40 per cent of Australia’s home loan holders were struggling to pay their bills in August 2020 as the coronavirus lockdowns crippled the economy. Pictured is Melbourne’s Bourke Street mall during the Stage 4 lockdowns

  • Digital Finance Analytics estimates 40.1 per cent of home borrowers in stress
  • Levels have risen significantly since February as result of coronavirus pandemic
  • Outer suburbs of Sydney, Melbourne had 80 per cent of loans in dire straits
  • Wealthy areas of Sydney’s north shore and eastern suburbs also in the red zone 
  • Melbourne home to seven of Australia’s ten worst areas for mortgage stress 

Australia’s worst postcodes for mortgage stress have been revealed amid fears that the first recession in three decades will trigger a wave of foreclosures.

Digital Finance Analytics calculated that more than 80 per cent of borrowers were struggling to pay their bills in parts of Melbourne, Sydney, Brisbane, Perth, Hobart and some regional areas, as coronavirus lockdowns crippled the economy.

The national average of people who lacked sufficient funds to pay their bills had surged to 40 per cent, up from 33 per cent in February before the COVID-19 pandemic was declared.

Six-month mortgage repayment holidays had shielded some struggling mortgage holders from the full effects of the lockdown but the banks are now asking for their money and pressuring borrowers to sell if they can’t pay up.

READ MORE VIA THE DAILY MAIL

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