Wyndham Vale has one of the nation’s highest rates of mortgage default, latest statistics reveal.
Figures from ratings agency Fitch show that 1.6 per cent of Wyndham Vale mortgages were at least 30 days in arrears as of September 30, ranking it among Australia’s 20 worst-performing postcodes.
It was the fourth-highest mortgage delinquency rate in Victoria, behind Hillside, Corio and Delacombe.
Fitch director James Zanesi said mortgage defaults in Wyndham Vale were expected to rise.
“Unemployment in [this] area has increased to the highest level in three years,” he said.
“House prices have also shown little appreciation in the last three years.”
Wyndham also has one of the nation’s highest rates of mortgage stress, defined as spending 30 per cent or more of household income on mortgage repayments.
Data from the 2011 census reveals that 15.4 per cent of households in the municipality are experiencing mortgage stress – above the national average of 9.9 per cent.
Fitch Australia and New Zealand structured finance senior director Natasha Vojvodic said that while the recent interest rate cut meant mortgage rates had fallen to their lowest point in 50 years, it was unlikely to be beneficial to mortgage-holders who were already struggling.
“Interest rates are already at low levels while household finances have improved following lower petrol prices,” Ms Vojvodic said.
“Fitch is of the view that a cut in rates will have no impact.
“Any defaults in the current environment will be due to other key factors such as sickness, business bankruptcy and divorce, which are unaffected by interest rates.”
