‘Every cent counts’: How people keep up in Sydney’s most mortgage-stressed suburb
People with home loans in the Sydney suburb of Casula have been taking on second jobs, dipping into superannuation, growing fruits and vegetables in the backyard and cutting out takeaway to keep up with their payments.
Casula is the worst performing postcode in Sydney and Australia for mortgage arrears, according to S&P Global Ratings data. About one in every 32 borrowers – 3.16 per cent – are falling behind.
Kurt Bridde, 44-year-old civil engineer
Casula resident Kurt Bridde and his family are not alone in facing the highest levels of mortgage stress. The 44-year-old civil engineer admits to having been behind on his home loan repayments.
Kurt Bridde, 44, with his children Izabelle, 10, and Levi, 7, in their Casula home.Credit: Janie Barrett
“About 18 months ago we got into a bit of trouble and things were tight,” Bridde said. “We had to defer payments for two months. Since then, we’re back on track, but we do struggle.”
Casula is followed by Craigieburn in northern Melbourne at 2.81 per cent. Households are also under stress in the Sydney suburbs of Blacktown (2.26 per cent) and Camden (2.09 per cent).
Arrears have increased most over the past year in NSW and Victoria, and have declined in Queensland and Western Australia.
The median house price in Casula is $954,000, up 35.3 per cent in five years, on Domain data.
It comes as the Reserve Bank kept the cash rate on hold at 4.35 per cent on Tuesday, following 13 interest rate rises in a bid to tackle inflation. Borrowers hoping for relief are unlikely to get a rate cut for months.
Bridde, a father of two, reveals mortgage repayments make up a large chunk of his combined salary with his wife.
“Our mortgage repayments are nearly 38 per cent of our joint income,” he said.
The couple keep everyday costs down by staying in more often and cutting out takeaway entirely.
Lee Crossley, 64-year-old tradesman
Lee Crossley, 64, dips into his superannuation to manage his mortgage repayments.Credit: Janie Barrett
Lee Crossley took on a second job for six months last year and dips into his superannuation to keep afloat.
“I worked another job in the trades just to assist with home loan repayments,” he said. “Now I take $10,000 out of my superannuation every financial year.”
Crossley lives in Casula with his wife, daughter and granddaughter. Alongside refinancing his home loan to get a better interest rate, he’s had to cut down on groceries.
“Every cent counts. Day-to-day living is a little bit harder,” he said.
Asked what message he has for the government, Crossley said they need to “start worrying about the public, as people are clearly struggling”.
Huu Nguyen, 71-year-old retiree
Huu Nguyen, 71, grows his own fruit and vegetables to combat the high interest rates. Credit: Janie Barrett
Nguyen worked as a police officer in Vietnam before relocating to Australia in 1989. He commenced a job as a factory worker in Sydney’s Emu Plains before retiring in 2018.
“I bought this home in Casula with my wife in 2013 and use my pension to assist with the mortgage,” he said.
Nguyen keeps everyday costs down by growing his own fruits and vegetables.
“Sydney is expensive, but I’m able to save money by filling my front and rear gardens with bananas, custard apples, papaya, jackfruit, herbs and avocado.”
Rosemarie Carey, 37-year-old government worker
Rosemarie Carey, 37, considers takeaway to be a luxury amid mortgage stress.Credit: Janie Barrett
Rosemarie Carey and her husband are first home buyers in Casula and have had to adjust their lifestyle.
A mother of two toddler sons, Carey had to go back to working five days a week to make ends meet.
“When our fixed mortgage rate changed, I went from four to five days a week to meet that difference,” she said.
Carey considers herself one of the lucky ones as her job allows her to work completely from home.
“I’m lucky that I could go back an extra day, but with childcare costs as well I need to be working full-time.”
Carey said other measures enable them to keep on track with mortgage repayments.
“Takeout is considered a luxury, and we take our sons to the playground over paid activities more often.”
Data reveals the suburb of Casula has the highest level of mortgage stress in Sydney.Credit: Janie Barrett
Equilibria Finance managing director Anthony Landahl said people with home loans are absolutely prioritising their mortgage repayments.
“In some situations where it has been a one income earning household, the other party – be it husband or wife – has had to re-enter the workforce in some capacity,” he said.
“We are also discussing with our clients recalibrating their budgets, ensuring they are paying off their credit cards and that their limits are not too high so that fundamentally they are living within their means.”
However, first and foremost, Landahl suggested borrowers should negotiate a better rate.
“They should talk to their broker or provider directly to try and negotiate a better rate to ensure they are not paying more interest than they need to,” he said.
Domain head of research and economics Dr Nicola Powell said that after months of stability with the cash rate held, borrowers are looking towards a reprieve.
“We’ve absolutely moved away from consumers worrying about whether rates will be hiked. Everyone is feeling the pinch and wants to see that cash rate reduced,” Powell said.
“We’ve seen incredible resilience with families adjusting household budgets to meet higher repayments, diving into savings and working more hours.
“Home owners are feeling the pain and the longer rates stay high, the greater the risk is for households going into mortgage arrears and getting into that situation where they have to sell.”
Powell said that while it’s possible to get a surprise reduced cash rate by the end of the year, she predicts it will most likely be in the early part of next year.