Queensland default rates among worst in country

Wednesday 22 December 2010

Article by Mozo

Home loan delinquency rates in Queensland are among the worst in the country, new research has found.

Queensland default rates among worst in country

According to a Fitch Ratings report, which was obtained by the Brisbane Times, three of the 12 regions with the highest number of mortgage holders in arrears are from Queensland – namely, Logan City, Gold Coast east and the Caboolture area.

The report looked at 220,000 Queensland mortgages valued at a total of $39 billion, which was recorded as the second highest state mortgage balance in Australia.

It also pointed to a "remarkable deterioration" in repayment performance in Queensland during the year to September as 30-plus day arrears increased from 1.12 per cent to 1.54 per cent.

According to the Brisbane Times, this trend was partly put down to the high unemployment rate in Queensland earlier in the year, as well as rising increasing interest rates and decreasing house prices which served to make it harder for people to pay off their mortgages.

Consumers struggling with repayments and other living costs can choose to compare home loans and consider refinancing. Earlier this week, assistant treasurer Bill Shorten cast doubt on whether the federal government's recently announced package of banking reforms will result in lower interest rates.

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