North homes ‘under stress’

KIM WATERS
THREE of Geelong’s northern suburbs are in Victoria’s top 10 for “mortgage stress”, according to an international ratings agency.
Fitch’s listed North Geelong, Bell Park and Drumcondra third for mortgage payments over 30 days late.
The Australian Mortgage Delinquency by Postcode report said 2.01 per cent of home loans in the suburbs’ 3215 postcode were late, compared to the lowest Victorian rate of .99 per cent in Melbourne’s Aspendale.
The report also rated Avalon, Corio, Ocean Grove, Breakwater and Belmont in the state’s top 58 suburbs for late repayments.
The report said just over 1.4 per cent of Breakwater loan repayments were late in the six-month study period, while 1.44 per cent of mortgages at Corio and Ocean Grove were beyond 30 days.
The report attributed mortgage stress to increased costs of living and rising interest rates.
“In the event of further interest rate hikes, the agency believes regions that have shown sensitivity to interest rate movements will continue to be the most affected,” the report said.
The report ranked Victoria as the “best performing state” in Australia for meeting mortgage repayments on time.
“Arrears levels in Victoria increased over the six months to March, 2011, although it is still performing well, with an overall delinquency rate of 1.34 per cent, which is considerably lower than the other large states of New South Wales at 1.93 per cent and Queensland at two per cent.”