Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

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

Mortgage stress to blow out in 2009

Staff Reporter 1 minute read

While interest rate cuts have helped ease mortgage stress close to one million households could experience it by mid-2009 as rising unemployment takes its toll, according to Fujtisu Consulting.

Fujitsu Consulting’s latest Mortgage Stress-O-Meter, released yesterday, revealed that mortgage stress levels had fallen by 23 per cent over the past four months to 680,000 compared to 882,000 in August this year.

However according to Fujitsu’s forecasts, 960,000 households could suffer mortgage stress by June 2009 as unemployment rises and fails to offset the RBA’s rate cuts.

Young families will continue to be the largest sufferers of mortgage stress, the report predicts, followed by “disadvantaged fringe” households – low income households in peripheral urban or rural locations.

The “battling urban” demographic – limited income households in high density urban areas – will also struggle, the report said.

Advertisement
Advertisement

Earlier this week the Housing Industry Association (HIA) said households suffering mortgage stress had fallen to 584,354, according to its calculating methods, however it also warned that “weaker employment prospects could undo this good news”.

 

Mortgage stress to blow out in 2009
default
TheAdviser logo
default
more from the adviser
expenses Major bank overhauls assessment process

A big four bank has bolstered its assessment team and will priori...

drop rate down Industry reacts to cash rate decision

The Reserve Bank of Australia has announced its decision to leave...

taxes850 Ignorance of extended asset write-off a boon for brokers

More than a third of SMEs are unaware of the extended instant ass...

FROM THE WEB