Most home owners have managed to keep up with 13 interest rate rises, but in some areas at least one in 50 borrowers are behind.
Home owners facing the highest levels of mortgage stress who decide to sell their home and rent instead would face a tight local rental market, new analysis shows.
This remains historically low, but the ratings agency expects more households to fall behind as more workers lose their jobs, although the level of increase is expected to be moderate. Many households have so far kept their jobs, Households are also under stress in Blacktown and Camden in western Sydney and Doreen in northern Melbourne and Burnside in Melbourne’s west, as well as Advancetown on the Gold Coast and Armadale in Perth’s outer south-east, all of which have at least 2 per cent of loans in arrears.S&P Global Ratings director Erin Kitson said pre-pandemic, the postcodes under pressure were largely in Western Australia, where the property market had a stretch of weakness.
In Blacktown, house rents have risen 18 per cent over the year to June, while unit rents are 20.9 per cent higher. Houses rents in Casula rose 14 per cent and Camden by 10.9 per cent. Canstar data insights director Sally Tindall said higher local rents pose a challenge to home owners falling behind and considering selling and renting elsewhere.“This does limit their options when people feel like they’re a rock and a hard place,” she said.
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