Fitch Ratings have released some data that show an unexpected increase in mortgage delinquency in Victoria, with some Melburnians struggling to keep up repayments on their mortgage.
Victoria was the only state to record an increase, hitting 1.37 per cent at the end of March this year, a rise of 17bp from September last year.
Some areas of Victoria were significantly above the national average when it comes to mortgage delinquency, including Hume City, Melton-Wyndham and outer-northern Melbourne.
Fitch Ratings director told Your Investment Property Mag the recent spikes in unemployment were most likely to be the driving force behind people struggling to keep up mortgage repayments.
“Historically these regions (outer-northern and outer-western Melbourne) have shown strong sensitivity to mortgage rates due to socio-economic factors like high unemployment and low-income households,” he said.
Generally, the mortgage delinquency rates in Australia are low due to our stable economy, reasonable unemployment levels and favourable monetary policy.
The ten worst suburbs in Australia according to the research were:
- Budgewoi NSW – 3.7% (30+ Day Arrears)
- Torquay VIC – 3.7%
- Wallan VIC – 3.5%
- Melton VIC – 3.5%
- Lynbrook VIC – 3.5%
- Green Valley NSW – 3.4%
- Palm Cove QLD – 3.3%
- Corio VIC – 3.2%
- Craigieburn VIC – 3.2%
- Wyndham Vale VIC 3.1%