By Alesha Capone
Residents of three postcodes located in Melbourne’s west are among the areas facing the highest mortgage stress in the nation, according to a new report.
Research and consulting firm Digital Finance Analytics (DFA) has released its mortgage stress data for May, which ranked the 3037 postcode (which includes Delahey, Hillside and Sydenham) as experiencing the second-highest amount of mortgage stress in Australia.
The 3030 postcode (Werribee, Werribee South, Point Cook, Quandong and Derrimut) was ranked fourth on the list, with 3029 (Hoppers Crossing, Tarneit and Truganina) placing fifth.
According to the report, between 6000 to 7000 households in each of these postcodes are experiencing mortgage stress.
The 3350 postcode (Ballarat and surrounds) ranked as having the highest amount of mortgage stress in Australia, with more than 7000 households experiencing mortgage stress.
DFA surveyed 52,000 households across the nation within a year, and used mortgage industry reports, company information and banking and economic analysis to calculate the figures.
The report considers households to be in severe mortgage stress if their gross income – such as salary, pensions, interest and dividends – is 10 per cent or more below what they spend on tax, mortgage repayments, other housing costs, food, childcare, and school fees every month.
According to the report, about 1.4 million households across the nation were experiencing mortgage stress in May – equating to 37.5 per cent of all households in Australia.
In contrast, the report stated 38 per cent of households experienced mortgage stress during April.
The report stated that between April and May, some households found relief through the federal government’s JobKeeper payments, returning to work post-pandemic or refinancing to a lower mortgage repayment rate.
Last month, Uniting Vic.Tas emergency relief lead Cathryn Ryan told Star Weekly that increasing numbers of people who had lost their jobs due to COVID-19 were seeking emergency assistance.
Ms Ryan said this included families and couples where one adult was still employed, allowing them to cover mortgage payments, but that the other partner had lost their job, meaning there was no money left for essentials such as food.
To contact Uniting Wyndham’s emergency relief services phone 9051 2000 or visit 19 Duncans Road, Werribee.
