Cade Lucas
Wyndham council is being urged to step in and help struggling mortgage holders in the municipality by reducing or suspending their rates.
Mortgage Stress Victoria legal director Matthew Martin, said households struggling with mortgage repayments were ratepayers too and after repeated interest rate rises, council’s were one of the few places that could offer them relief.
“Any mortgage holder has to pay council rates as well and if you fall in arrears on your council rates your property is at risk of being repossessed” said Mr Martin who is based in Wyndham as part of Mortgage Stress Victoria’s parent company, non-profit legal service, West Justice.
He urged council’s and banks to make special arrangements for ratepayers and customers in mortgage stress.
“We’re calling on the banks and local councils to provide more suitable long-term hardship assistance to people as rising interest rates require a long term solutions.”
Wyndham is one of the country’s largest mortgage belts, with more than 43,000 households paying off loans.
Mr Martin said the latest rate hike on June 6, which lifted them to an 11 year high of 4.10 per cent, had tipped many over the edge
“There’s been a particular spike since the most recent interest rate rise.
“Our service is now booked out a month in advance whereas it used to only be a week or two.”
Mr Martin said the real difference compared to previous increases, wasn’t in the amount of people seeking help, but the type.
“We’re seeing a new cohort of people in financial hardship,“ he said,
“People who haven’t had another life event happen to them, family violence, loss of employment, injury or mental health issues.
“Interest rate rises have just got unaffordable for them even though they work full time.”
Mortgage stress is defined as total household expenses outweighing income while having a mortgage and Mr Martin said growing suburbs like Tarneit and Point Cook were particularly exposed.
Along with crisis services like Mortage Stress Victoria, he said struggling households should contact their council, bank, energy provider and other creditors to ask for assistance.
‘It’s never too late to get help with your mortgage stress.”
Wyndham corporate services director Mark Stoermer said residents facing financial hardship were encouraged to apply for help under council’s hardship policy which is available to owner occupier homeowners and offers a range of assistance including waiver of penalty interest, waiver of legal costs, payment arrangements, and in some cases, to defer part of the rates.
Details: www.wyndham.vic.gov.au/form/application-for-hardship-conside
