The zip codes on which Australians cannot pay off their home loan despite record low interest rates

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The zip codes on which Australians cannot pay off their mortgage have one thing in common: they are located far from the city center.

Consumer group CHOICE has revealed the suburbs where borrowers cannot pay monthly installments, despite major banks offering fixed mortgage rates of less than 2 percent.

Digital Finance Analytics, which provided CHOICE with the data for April 2021, defines mortgage stress as a situation where homeowners are unable to meet their mortgage obligations – and not spend just a third of their income on their loan.

CHOICE Director Alan Kirkland said borrowers in these suburbs and regional areas struggled to even put food on the table.

The zip codes on which Australians cannot pay off their mortgage have one thing in common: they are located far from the city center.  Campbelltown, over 55 km from Sydney city center, Australia's mortgage capital, with zip code 2560 with 10,578 struggling borrowers.  The surrounding suburbs of Airds and Leumeah are on the list.  A short drive away, the Liverpool and Casula area of ​​Sydney's far south west, had 10,002 households in trouble

The zip codes on which Australians cannot pay off their mortgage have one thing in common: they are located far from the city center. Campbelltown, over 55 km from Sydney city center, Australia’s mortgage capital, with zip code 2560 with 10,578 struggling borrowers. The surrounding suburbs of Airds and Leumeah are on the list. A short drive away, the Liverpool and Casula area of ​​Sydney’s far south west, had 10,002 households in trouble

The mortgage loan hotspots in Australia

1.2560: Campbelltown, Airds, Leumeah (10,578 households)

2.170: Casula, Liverpool, Moorebank (10,002 households)

3.6065: Wanneroo, Melaleuca (9,889 households)

4.4350: Toowoomba (9,693 households)

5.3805: Fountain Gate, Narre Warren (8,919 households)

6.3806: Berwick, Harkaway (8,292 households)

7.3029: Hoppers Crossing, Tarneit (7,972 households)

8.3350: Ballarat, Sovereign Hill (7,546 households)

9.3037: Delahey, Sydenham (7,229 households

10.6030: Quinns Rocks, Merriwa (6,876 households)

Sources: Digital Finance Analytics, CHOICE

“These are households where people from fourteen to fourteen days spend more than they earn,” he said.

‘That means that they have to make difficult choices, such as putting food on the table or paying off. If they can’t keep up with the juggling act, they risk losing their home. ‘

Campbelltown, over 55 km from Sydney city center, Australia’s mortgage capital, with zip code 2560 with 10,578 struggling borrowers.

The surrounding suburbs of Airds and Leumeah are on the list.

A short drive away, the Liverpool and Casula area of ​​Sydney’s far south west had 10,002 households in trouble.

Melbourne’s distant suburbs were also in the red area, with 8,919 borrowers at Fountain Gate and Narre Warren, 27 miles from the city center, making it the top five for mortgage stress.

Nearby Berwick in the Dandenong Ranges was next with 8,292 homes struggling with their loan.

Suburbs in Melbourne’s western suburbs also struggled with 7,972 households struggling financially in Hoppers Crossing and Tarneit, as a further 7,229 borrowers struggled in Delahey and Sydenham.

Perth had two places in the top ten for mortgage stress with 9,889 in the red at Wanneroo, while another 6,876 struggled at Quinns Rocks and Merriwa.

Regional areas were also not immune: 9,693 households were struggling in Toowoomba, west of Brisbane, as 7,546 were struggling in Ballarat, west of Melbourne.

Melbourne's distant suburbs were also in the red area, with 8,919 borrowers at Fountain Gate and Narre Warren, 27 miles from the city center, making it the top five for mortgage stress.  Nearby Berwick in the Dandenong Ranges was next with 8,292 homes struggling with their loans

Melbourne's distant suburbs were also in the red area, with 8,919 borrowers at Fountain Gate and Narre Warren, 27 miles from the city center, making it the top five for mortgage stress.  Nearby Berwick in the Dandenong Ranges was next with 8,292 homes struggling with their loan

Melbourne’s distant suburbs were also in the red area, with 8,919 borrowers at Fountain Gate and Narre Warren, 27 miles from the city center, making it the top five for mortgage stress. Nearby Berwick in the Dandenong Ranges was next with 8,292 homes struggling with their loan

Perth had two places in the top ten for mortgage stress with 9,889 in the red at Wanneroo, while another 6,876 struggled at Quinns Rocks and Merriwa

Perth had two places in the top ten for mortgage stress with 9,889 in the red at Wanneroo, while another 6,876 struggled at Quinns Rocks and Merriwa

Perth had two places in the top ten for mortgage stress with 9,889 in the red at Wanneroo, while another 6,876 struggled at Quinns Rocks and Merriwa

A Senate economics committee in March recommended repealing responsible lending laws enacted by Kevin Rudd’s Labor government in 2009 during the height of the global financial crisis.

One Nation leader Pauline Hanson opposes the federal government’s decision to repeal those laws.

Kirkland said abolishing ten-year-old laws would cause more borrowers to take risks they can’t handle.

“ If the government gets away with its plan to tackle safe loan laws, people desperate for a rising housing market run the risk of overexposure and people who need to refinance will not be adequately protected, ” he said .

CHOICE Director Alan Kirkland said borrowers in these suburbs and regional areas struggled to even put food on the table.  Pictured are houses in outside of Sydney

CHOICE Director Alan Kirkland said borrowers in these suburbs and regional areas struggled to even put food on the table.  Pictured are houses in outside of Sydney

CHOICE Director Alan Kirkland said borrowers in these suburbs and regional areas struggled to even put food on the table. Pictured are houses in outside of Sydney

The royal banking commission that was finalized two years ago also criticized the banks for approving loans that borrowers could not pay.

Fears of missing out have caused Australian house prices to accelerate earlier this year since October 1988.

Between January and April, median home prices in Sydney rose 11.2 percent to a new high of $ 1.147 million, more than accounting for the five consecutive months of decline from May to September last year, CoreLogic data showed.

House prices in more upscale suburbs on the Upper North Shore, Northern Beaches and Sutherland Shire were significantly higher, with those zip codes having much lower mortgage stress despite the higher prices.

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