A recent survey by comparison site Finder has revealed a concerning trend among homeowners.
According to the survey of 1,071 respondents, including 342 with mortgages, 12% have missed one or more mortgage repayments in the past six months. This equates to an estimated 396,000 borrowers falling behind on their mortgage.
The survey further revealed that:
Additionally, 3% of mortgage holders have had to request a repayment holiday or applied for hardship assistance from their lender.
Richard Whitten (pictured above), home loans expert at Finder, expressed growing concerns about mortgage defaults.
“Thousands of mortgage holders have weathered rate rises but are now experiencing extreme financial strain as savings and emergency funds run dry,” Whitten said. “Any further hikes would push many to breaking point.”
The Finder data also highlighted that one in three borrowers (32%) are worried about missing a repayment due to mortgage stress, putting over 1 million Australians at risk of delinquency.
Among those who missed a repayment, 33% attributed it to running out of money because of other bills, while 31% cited increased interest rates making their mortgage unaffordable.
Whitten stressed that many Australians are spending a disproportionate amount of their income on their home loans.
“Interest rates rose so rapidly that mortgagors have reached breaking point with some unable to stay financially afloat,” he said.
The Finder leader advised homeowners to review their home loans.
“Take a look at what rates are available from other lenders and make sure you’re not paying more than you need to,” Whitten said. “And have a look at what your lender is offering new customers. You might be able to negotiate a better deal with your current lender, or you could find a better offer somewhere else.”
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