Mortgage delinquencies are down across Australia in the last year, suggesting home owners are finding it easier to pay their mortgages.
Despite some low income areas on fringe suburbs in the major capitals still struggling, the record low interest rates on offer are obviously giving mortgage payers some breathing space.
Melbourne’s worst suburbs for mortgage payment defaults right now are Drysdale, Wyndham Vale and Hillside. Ballarat’s Delacombe also has the dubious honour of being one of the State’s worst.
The report on mortgage delinquency was done by ratings agency Fitch and its lead author James Zanesi spoke to The Age about people in fringe urban areas struggling to make mortgage payments.
“People in those types of areas are sensitive to expenditures,” he said.
“They’re sensitive to interest rate movements because they’re usually low-income earners…and can’t afford a home close to the centre of the city.”
The report on improved mortgage delinquency comes amid the negative economic news of falling commodity prices, poor consumer confidence and the budget deficit.
Mr Zanesi says the improved figures on mortgage payments were due to a couple of factors.
“The main driver is stable, low interest rates and the fact that the housing market has been stable or boomed in certain areas,” he said.
“The unemployment rate has increased a bit but is still at an acceptable level.”
“Overall, the Australian economy is strong compared to somewhere like Europe.”