Eddie Russell
Homeowners in Wyndham are feeling the crunch of living in their own house, analysis from the West of Melbourne Economic Development Alliance (WoMEDA) has revealed.
According to WoMEDA, Melton has the ninth highest level of mortgage stress in Victoria.
Close to 10 per cent of households in Wyndham experienced mortgage stress in 2023, compared to the national average of 6.5 per cent, the WoMEDA analysis found.
Community legal centre Mortgage Stress Victoria provides free help to people experiencing mortgage stress through its team of specialist lawyers, financial counsellors and social workers.
Mortgage stress is defined as a household that allocates more than 30 per cent of its income to mortgage repayments. It impacts people’s disposable income and household consumption.
MSV chief executive Nadia Harrison said “a high proportion” of those seeking help are young families and migrants.
Mortgage stress is also high in Melton, which had the second highest rate in Victoria.
Ms Harrison said homeowners in Melton, Wyndham, and Brimbank all suffered more than most places in Australia.
“Our data reflects that mortgage stress is highest in the growth corridors – areas squarely within the outer suburban fringe,” she said.
“It’s really what people loosely call the mortgage belt; that outer suburban corridor and peri-urban areas.
Confronting the issue as soon as possible was the best thing to do, Ms Harrison said.
“It’s never too early to get help. The overwhelming majority of our clients come to us at the early stages of mortgage stress, and we far prefer that before the debt has spiralled into crisis,” she said.
“It’s much easier to manage and it’s much better for the client.”
In an effort to help homeowners experiencing mortgage stress, the state government has announced additional funding for not-for-profit community service organisations to help provide financial counselling services.
The additional funding will help more homeowners experiencing financial hardship and address the high demand for financial counselling following 13 interest rate rises, increasing rents and cost-of-living pressures, the government said.
