Mortgage stress down in Queensland but up across Australia

first_imgFewer Queensland homeowners are suffering mortgage stress.MORTGAGE stress is on the decline in Queensland as all other state and territories see an increase in homeowners defaulting on their mortgages. The latest mortgage delinquencies map from Moody’s Investors Service showed the number of mortgages more than 30 days in arrears in Queensland had dropped from 1.69 per cent to 1.62 per cent in the year to November 2018.The report attributed the fall in mortgage stress in Queensland to a growing state economy, up 2.9 per cent in the year to December 2018, and a 5.8 per cent increase in the average Brisbane income in 2018. In comparison, Brisbane house prices increased 0.3 per cent in the same time. However, the number of Queenslanders feeling mortgage stress was above the national average of 1.58 per cent, as well as above ACT (1.11 per cent), New South Wales (1.19 per cent), Tasmania (1.32 per cent) and Victoria (1.39 per cent). Moody’s senior analyst Alena Chen said the decline is mortgage stress in Queensland was thanks to its diversified economy compared to other resource-rich states, but she was cautious about predicting a continuation of the trend.Ms Chen said Moody’s predicted an increase in mortgage stress across the nation in 2019. “We do expect arrears to increase over the next year but because the GDP is below trend but still good and the employment rate is at an historical low, we think arrears will continue to remain low on average,” she said. Queensland’s best performing region was Brisbane west where only 0.81 per cent of borrowers suffered from mortgage stress while in Brisbane’s south and inner city that number was only slightly higher at 0.95 per cent. At the other end of the scale, mortgagees in the Queensland outback were under the most mortgage stress (4.96 per cent) with Townsville (2.88 per cent) and Mackay (2.64 per cent) rounding out the bottom three. Ms Chen said this was to be expected. “This a trend we see consistently in terms of capital city performance compared to rest of the country,” she said. “Capital cities outperform regional areas due to stability of jobs and diversity of industries in inner-cities.” The postcode with the lowest mortgage stress was Ormiston (0.06 per cent), followed by Auchenflower (0.15 per cent) and Chelmer (0.23 per cent).More from newsParks and wildlife the new lust-haves post coronavirus13 hours agoNoosa’s best beachfront penthouse is about to hit the market13 hours agoQueensland’s best performing postcodes for mortgage stress4160 Ormiston 0.06 per cent4066 Auchenflower 0.15 per cent4068 Chelmer 0.23 per cent4179 Lota 0.24 per cent4035 Albany Creek 0.30 per centQueensland’s worst performing postcodes for mortgage stress4815 Condon 5.34 per cent4825 Alpurrurulam 5.30 per cent4812 Currajong 3.76 per cent4285 Allenview 3.51 per cent4650 Aldershot 3.25 per centlast_img read more