Anglicare’s Anne Rodda reveals impact on thousands of Macarthur families struggling with mortgages
Southwest Sydney families are having to choose between basic needs due to overwhelming financial pressures.
Macarthur
Don't miss out on the headlines from Macarthur. Followed categories will be added to My News.
Macarthur families are having to prioritise basic living needs, as thousands of homes in southwest Sydney are burdened with mortgage stress.
New data has revealed, that for postcode 2560, which includes Campbelltown, Airds, Bradbury, Leumeah and Ambarvale, there are more than 11,400 households that are experiencing mortgage stress.
As of the end of February 2020, it’s the postcode highest in mortgage crisis in Sydney.
Anne Rodda, an Anglicare financial counsellor based in Campbelltown, has witnessed first hand the spike in families battling to keep their finances afloat.
Having been in her current role for more than two years, Ms Rodda recalled that in the first few months she did not have many clients struggling with mortgage repayments but that has changed in the last 18 months.
“It’s definitely something I see regularly now,” Ms Rodda said.
“A lot of it has been around big gaps in income due to Covid and people have built up quite significant arrears and now they are trying to catch up.
“But, the increased cost of our basic everyday needs are just adding to the mortgage stress.”
Ms Rodda said Macarthur families are having to prioritise basic necessities, as more and more are having to take a need versus need approach rather than a need versus want approach.
She said some people cannot afford food, to pay their utilities or transport costs.
“It’s not ‘I have to give up this luxury item’, it’s ‘how I am going to put food on the table for kids’,” Ms Rodda said.
“So many families are having to pull out kids from extracurriculars because they cannot afford it.”
Ms Rodda said most people go through a time where they have to revert to only paying for basic necessities, but the current state of affairs is seeing families battle the financial issues for an extended period of time.
She said it is causing mental health issues and relationship strain.
“We have a lot of anxious and overwhelmed people coming into the Campbelltown office,” Ms Rodda said.
“We are seeing a lot of people in the middle-aged to older couples and families.”
Ms Rodda said she is concerned about any increases in interest rates as Macarthur households have “no breathing room” when it comes to bills.
“I fear for a lot of people because of their mortgages,” she said. “It is only going to take those little increases in interest rates.”
Ms Rodda said Anglicare can provide emergency relief with food items, assistance with utility costs and counselling.
Digital Finance Analytics principal Martin North explained the mortgage stress households are those with a home loan that spend more each month than the income they receive.
He explained there are a few reasons behind why so many of these households are in southwest Sydney.
“Firstly, there has been a huge amount of development and in that area you have a lot of first time buyers and recent movers who have very high mortgages because the values have gone up,” he said.
“In these particular suburbs there are people on less secure employment or on quite a few part time jobs so the income side of their cash flow has not really improved in years.”
Mr North said the third factor is that the cost of living is rising, with food, fuel and childcare costs all going up.
“Quite a lot of these households have big costs pressures too because they have children,’ he said.
“A lot of them borrowed with low interest rates but those pressures are going to intensify.”
Mr North said he was concerned about the “teaser rates” and support measures to attract more first-time buyers into southwest Sydney.
He urged prospective buyers not to take the word of banks that they can afford repayments, and to do their own research.
“Once you are on that slippery slide, it’s hard to get out,” Mr North said.
“But if you are having issues, then you need to talk to your lenders because the banks do have an obligation to offer support.”
Australian dream ‘at risk’
Campbelltown MP Greg Warren said mortgage stress is one of the most “pressing and confronting” issues impacting families across southwest Sydney.
“One of the reasons for that is of course supply, but we did see mass inflation as an outcome to the housing market during the pandemic,” he said.
“That said, it doesn’t change anything for those local families who are suffering mortgage stress which is a consequence to the more broader housing issues that the state is confronting.”
Mr Warren said ultimately this was a federal mater, and the government needed to make it a top priority.
“We could see generations financially suffer with no inaction,” he said.
“We don’t want to see the great Australian dream to own a house get washed away either.
“That will only happen if the government stands by and does nothing.”
Mr Warren said families are getting “financially kicked” in every corner when it comes to the cost of living.
“Whether it’s fuel, food, beverages, mortgage,” he said.
“We are not seeing wage growth, all we are seeing is increased prices which is accelerating the cost of living for families and businesses.”
‘100 per cent’: First look at young rugby players touted as future Wallabies
They have been rivals some days, teammates on others and now this close-knit group of young rugby players will share the honour of wearing an Australian uniform for the first time.
NSW aged care homes: Who meets and fails key targets
NSW aged care residents are not getting the care they are entitled to, as providers reveal the extreme lengths they’re using to hire staff. Search and see the list.