Mortgage stress 'has risen modestly'

Thursday 28 June 2012

Article by Mozo

The high cost of living appears to be putting mortgage holders under a greater amount of pressure at the moment.

New figures compiled by Fitch have suggested that there was a "modest" rise in cases of home loan stress across the country in the first quarter of 2012, the Herald Sun reports.

Around $35 million worth of loans were said to have "turned bad" during the three-month period and things could potentially get even more difficult for households.

The organisation stated that increasing pressure on the market could result in a rise in the number of people who are at least 90 days behind on their mortgage repayments.

These statistics show just how frugal Aussies are having to be at the moment, as it appears that interest rate cuts have not helped matters as much as many had hoped.

Reserve Bank of Australia chiefs lowered interest rates in November and December 2011, but the Fitch research indicated that this hasn't stopped a rise in mortgage stress. The national cash rate has fallen by a further 75 points since the turn of the year.

Have a question about home loans? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801395671-ADNFCR

Mortgage stress 'has risen modestly'

Find great home loan deals

Which type of home loan would you like to compare?

Back to top