Worst areas for mortgage deliquencies revealed in report
Australia’s coastal regions might boast one of the most enviable lifestyles in the world, but a report by Fitch Ratings reveals they are some of the worst locations when it comes to mortgage delinquencies.
The report revealed the number of mortgage holders who are behind on their repayments by 30 days or more.
Queensland has taken over from New South Wales as the state with the most hot spots in the top 10. Some of the worse performing regions include Ipswich, Logan City, Gold Coast, Caboolture and the Sunshine Coast.
While being more than 30 days overdue on mortgage repayments doesn’t necessarily mean home owners default on their loans, more than half of delinquent loans on the Gold Coast were for more than 90 days, which presents a problem.
The report showed the findings this year are worse than last year’s report and the delinquency rate is above the national average
The suffering tourism industry and the amount of second homes in these areas have been pointed out as key contributors to their performance.
However the report wasn’t all doom and gloom.
Western Australia only worsened marginally to 1.59% from 1.5%, and no region in the state was high among the country’s worst-performing regions.
The report was released after an eldery Sunshine Coast man said his increasing rates bill was making him feel so sick he had visited a doctor and 45 homes in Townsville are being threatened with repossession after homeowners couldn’t afford their rates.
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