Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

NSW borrowers worst for repaying mortgages

By Staff Reporter
08 December 2009 | 1 minute read

Some postcodes in Australia have been more vulnerable to the recent rate rises, a new report by Fitch Ratings has found.

Advertisement
Advertisement

The report, Australian Mortgage Delinquency by Postcode, found Nelson Bay on NSW’s north coast to be the worst performing postcode after it recorded the greatest number of loans outstanding.

According to Fitch Rating’s head of Australian structured finance, Natasha Vojvodic, the report analyses the performance of the local residential mortgage market using data from approximately 730,000 loans outstanding at 30 September 2009, and ranks the performance of regions and postcodes to assess the true impact of recent changes in the mortgage market.

The report also analyses arrears based on loan to value ratio (LVR) and reviews LVR by postcode.

"Even though arrears have improved, performance remains variable based on the postcode, region or state. Regions in Sydney remain the worst performing in Australia, with NSW and WA being the worst performing states," Ms Vojvodic said.

"Improvement in affordability has been the biggest driver in the decrease in arrears and this becomes more apparent with more highly-geared borrowers. As interest rates rise, the trend for borrowers in these areas, such as south western and western Sydney, will reverse and return to be among the worst performing.”

While Nelson Bay was the worst performing postcode in terms of both dollar value and number, the Gosford / Wyong region was found to be the worst performing region.

NSW borrowers worst for repaying mortgages
default
lawyersweekly logo

Tags:

Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Travancore
49.78%
Timboon
49.57%
Dolphin Point
49.51%
Nyah West
49.42%
Preston Beach
49.29%
Newington
48.97%
Killcare Heights
48.89%
Wundowie
48.77%
Homebush
48.44%
Glenside
48.28%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.