Mortgage Meltdown

Mortgage Meltdown – Melbourne

PHOTO: Melbourne is home to seven of Australia’s ten worst postcodes for mortgage stress where home borrowers can’t service their loan and pay their bills on time

Devastating map shows the Great Australian Dream being shredded in Melbourne – with a staggering 97% of residents struggling to pay their mortgages in some suburbs

  • Melbourne is home to seven of Australia’s ten worst suburbs for mortgage stress
  • In Pascoe Vale and Narre Warren, 97 per cent of borrowers can’t pay their bills 
  • Digital Finance Analytics fears problem will get worse as unemployment rises 
  • The banks are also putting pressure on borrowers deferring their repayments 

Ordinary Melbournians are struggling under draconian lockdowns with up to 97 per cent of home borrowers unable to pay their mortgages in some suburbs.

Melbourne is home to seven of Australia’s ten worst postcodes for mortgage stress where home borrowers can’t service their loan and pay their bills on time.

Victorian Labor Premier Daniel Andrews’ Stage Four lockdowns are financially hurting young, growing families in the suburbs and the prospect of more restrictions risks causing more businesses to close.

The big banks in September are also auditing borrowers to see if they can start repaying their loans after six-month mortgage repayment holidays – as unemployment hits double-digit figures for the first time since 1994.

Ordinary Melbournians are struggling under draconian lockdowns with up to 97 per cent of home borrowers unable to pay their mortgages in some suburbs

Ordinary Melbournians are struggling under draconian lockdowns with up to 97 per cent of home borrowers unable to pay their mortgages in some suburbs

In Australia’s worst-affected suburb Pascoe Vale, in Melbourne’s north, 97 per cent of borrowers are suffering from mortgage stress, Digital Finance Analytics data showed.

Australia’s worst suburbs for mortgage stress

1. Pascoe Vale, Pascoe Vale South in Melbourne’s north: 97 per cent

2. Narre Warren East, Narren Warren North in Melbourne’s outer south east: 96.8 per cent

3. Grasstree Hill, Honeywood in Hobart’s north: 96.6 per cent

4. Belgrave, Tecoma in Melbourne’s outer south east: 96.1 per cent

5. Armadale, Armadale North in Melbourne’s inner east: 95.6 per cent

6.  Aberfeldie, Essendon in Melbourne’s north: 95.2 per cent

7. Rose Bay in Sydney’s east: 94.5 per cent

8. Mount Evelyn in Melbourne’s outer north east: 94.1 per cent

9.  Endeavour Hills in Melbourne’s outer south east: 93.8 per cent

10.  Kambah in Canberra’s outer south: 93.5 per cent

Source: Digital Finance Analytics data on the proportion of borrowers by suburb who were in mortgage stress in August 2020 

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