Increasing numbers 'struggling with home loans'

Thursday 29 September 2011

Article by Mozo

There has been an increase in the number of defaults on home loans recently, according to recent research by Moody's.

Aussies 'struggling with repayments'

A study by the firm revealed that the proportion of delinquent mortgages increased from 1.36 per cent in March last year to 1.67 per cent at the end of June 2011, reports the Herald Sun.

Senior analyst at the company Arthur Karabatsos asserted that there is evidence of a two-speed economy, with people on lower incomes struggling to stay afloat financially.

He explained that these Aussies are likely to borrow a larger proportion of their incomes in order to finance the purchase of a property.

However, while some may be struggling to cope with their mortgages, others may find now is a good time to compare home loans and purchase a property, as recent figures from the National Bank of Australia indicated that the cost of accommodation in capital cities fell by 2.4 per cent in the last quarter.

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