Mortgage misery hits the rich
The number of home loan defaults in affluent neighbourhoods in New South Wales is one the rise, new statistics show.
According to ratings agency Fitch, Vuacluse – one of Australia’s most well-off areas – has come seventh in a table of areas with the highest home loan defaults in September of this year.
The Australian Associated Press reports that the lack of available low-interest home loans arising as a result of rate hikes in late 2007 and earlier this year are widely felt to be responsible for the growing mortgage stress.
At the end of September, some 840,000 home loans worth $140 billion were outstanding, with Helensvale in Queensland found to have the highest proportion of unpaid mortgages by value.
The company anticipates that home loan repayment difficulties are likely to continue on into the new year.
However, homeowners may get some respite with a slew of new low-interest home loan offers in the new year following predicted rate cuts.
ABN economist Kieran Davies told the AAP that the Reserve may well bring the base rate below three per cent as 2009 gets underway.