Roxburgh Park to Mickleham mortgagees feeling the stress more

FOUR of the top 20 areas under mortgage stress in Australia are in Hume, shocking new figures reveal.

Mickleham homeowners are among the most mortgage-stressed in the country according to latest data.

FOUR of the top 20 areas under mortgage stress in Australia are in Hume, shocking new figures reveal.

The Roxburgh Park/Somerton area has the second highest percentage of households struggling with home loan repayments in the nation with 20.9 per cent, according to an analysis by the Grattan Institute.

Mickleham/Yuroke was the fifth highest with 20 per cent; Craigieburn West, 14th highest with 18.9 per cent; and Craigieburn North, 19th on 18.4 per cent.

Mortgage stress is defined as any household that spends 30 per cent or more of its income on loan repayments.

Grattan Institute Fellow Brendan Coates said Melbourne’s north was under mortgage strain because of the number of new housing estates being built in the region.

“These areas have more first home buyers and given house prices have risen so much in recent years they have purchased properties at much higher prices,” he said.

Mr Coates said many households could find themselves in trouble if the economic environment changed.

He said those who borrowed four to five times their income to buy a property would be at most risk if interest rates increased.

Uniting Lentara case practice team leader Rob Roles said in February they had the largest number of people seeking financial counselling ever, especially from Roxburgh Park and Craigieburn.

“Most people wait until they’ve got that notice saying their home loan is in default, which then puts their home jeopardy,” he said.

“In some instances we only have seven days to act.”

Mr Roles urged people facing mortgage stress to talk to their financial institution, get on the front foot and don’t “bury your head in the sand.”

For help contact Uniting Lentara’s financial counselling service on 9351 3600.