This article is from the Australian Property Journal archive
SIGNIFICANT parts of western Sydney and Melbourne’s west are in mortgage stress as the federal government looks to remove protections on safe lending laws, according to consumer group Choice.
The federal government is looking to push through legislation repealing lending obligations that were introduced in 2009. Lenders are obligated to make credit assessments and loan approvals in accordance with legal standards that to ensure borrowers are able to afford the loan.
Data from provided by Martin North at Digital Finance Analytics shows the top 10 crisis suburbs for NSW and Victoria alone represent a combined 134,000 households. The top 10 suburbs nationally for mortgage stress cover urban and regional parts of NSW, Victoria, Queensland and Western Australia.
At the top of the national list were postcodes 2560 in NSW, covering 10,578 households and including Campbelltown, followed by the 10,002 people in 2170, including Liverpool, Chipping Norton and Warwick Farm.
Third was Western Australia’s 6065 (9,889 households, including Pinjar and Wanneroo), and Queensland’s 4350 was fourth (9,693 households, locations such as Toowoomba), while the next five locations are Victoria – 3805 and 3806 in the south east (Fountain Gate, Narre Warren and Berwick), 3029 in the west (Hoppers Crossing, Tarneit and Truganina), Ballarat’s 3350, and 3037, including Sydenham.
Round out the top 10 was WA’s 6030, including Merriwa.
“These are households where from fortnight to fortnight, people are spending more than they are earning. That means that they have to make difficult choices, like whether to put food on the table or keep up with repayments. If they can’t maintain the juggling act, they risk losing their homes.” Choice CEO Alan Kirkland said.
“Many people are still doing it tough, and need laws that protect them from the bad bank behaviour that led to the banking royal commission,” he said.
Top 10 national postcodes in mortgage stress (by count)
| Rank | Postcode | Suburbs | State | Number of households in mortgage stress |
| 1 | 2560 | Airds, Ambarvale, Appin, Bradbury, Blair Athol, Bradbury, Campbelltown, Englorie Park, Gilead, Glen Alpine, Kentlyn, Leumeah, Rosemeadow, Ruse, St Helens Park, Wedderburn, Woodbine | NSW | 10578 |
| 2 | 2170 | Casula, Chipping Norton, Hammondville, Liverpool, Liverpool South, Lurnea, Moorebank, Mount Pritchard, Prestons, Warwick Farm | NSW | 10002 |
| 3 | 6065 | Ashby, Darch, Gnangara, Hocking, Jandabup, Landsdale, Lexia, Madeley, Mariginiup, Melaleuca, Pearsall, Pinjar, Sinagra, Tapping, Wangara, Wanneroo | WA | 9889 |
| 4 | 4350 | Athol, Centenary Heights, Cranley, Darling Heights, Drayton, East Toowoomba, Finnie, Glenvale, Harlaxton, Harristown, Kearneys Spring, Middle Ridge, Mount Kynoch, Mount Lofty, Mount Rascal, Newtown, North Toowoomba, Northlands, Prince Henry Heights, Rangeville, Redwood, Rockville, South Toowoomba, Southtown, Toowoomba, Toowoomba East, Toowoomba South, Toowoomba West, Top Camp, Wellcamp, Westbrook, Wilsonton, Wilsonton Heights, Wyalla Plaza | QLD | 9693 |
| 5 | 3805 | Fountain Gate, Narre Warren, Narre Warren South | VIC | 8919 |
| 6 | 3806 | Berwick, Harkaway | VIC | 8292 |
| 7 | 3029 | Hoppers Crossing, Tarneit, Truganina | VIC | 7972 |
| 8 | 3350 | Alfredton, Ballarat, Ballarat North, Ballarat West, Black Hill, Brown Hill, Canadian, Eureka, Golden Point, Lake Wendouree, Mount Clear, Mount Helen, Mount Pleasant, Nerrina, Redan, Sovereign Hill | VIC | 7546 |
| 9 | 3037 | Delahey, Hillside, Sydenham | VIC | 7229 |
| 10 | 6030 | Clarkson, Merriwa, Mindarie, Quinns Rocks, Ridgewood, Tamala Park | WA | 6876 |
Top 10 VIC postcodes in mortgage stress (by count)
| Rank | Postcode | Suburbs | Number of households in mortgage stress |
| 1 | 3805 | Fountain Gate, Narre Warren, Narre Warren South | 8919 |
| 2 | 3806 | Berwick, Harkaway | 8292 |
| 3 | 3029 | Hoppers Crossing, Tarneit, Truganina | 7972 |
| 4 | 3350 | Alfredton, Ballarat, Ballarat North, Ballarat West, Black Hill, Brown Hill, Canadian, Eureka, Golden Point, Lake Wendouree, Mount Clear, Mount Helen, Mount Pleasant, Nerrina, Redan, Sovereign Hill | 7546 |
| 5 | 3037 | Delahey, Hillside, Sydenham | 7279 |
| 6 | 3030 | Derrimut, Point Cook, Werribee | 6399 |
| 7 | 3064 | Craigieburn, Donnybrook, Kalkallo, Mickleham, Roxburgh Park | 6279 |
| 8 | 3810 | Pakenham, Pakenham Upper | 6218 |
| 9 | 3977 | Cannons Creek, Cranbourne, Cranbourne East, Cranbourne North, Cranbourne South, Cranbourne West, Devon Meadows, Five Ways, Junction Village, Skye | 6139 |
| 10 | 3178 | Rowville | 5483 |
| TOTAL | 70,526 |
Top 10 NSW postcodes in mortgage stress (by count)
| Rank | Postcode | Suburbs | Number of households in mortgage stress |
| 1 | 2560 | Airds, Ambarvale, Appin, Bradbury, Blair Athol, Bradbury, Campbelltown, Englorie Park, Gilead, Glen Alpine, Kentlyn, Leumeah, Rosemeadow, Ruse, St Helens Park, Wedderburn, Woodbine | 10,578 |
| 2 | 2170 | Casula, Chipping Norton, Hammondville, Liverpool, Liverpool South, Lurnea, Moorebank, Mount Pritchard, Prestons, Warwick Farm | 10,002 |
| 3 | 2567 | Currans Hill, Harrington Park, Mount Annan, Narellan, Narellan Vale | 5,815 |
| 4 | 2800 | Borenore, Cargo, Lucknow, March, Mullion Creek, Nashdale, Orange, Spring Hill | 5,577 |
| 5 | 2770 | Bidwill, Blackett, Dharruk, Emerton, Hebersham, Lethbridge Park, Minchinbury, Mount Druitt, Shalvey, Tregear, Whalan, Willmot | 5,574 |
| 6 | 2570 | Camden, Camden Park, Cawdor, Cobbitty, Elderslie, Ellis Lane, Grasmere, Mount Hunter, Nattai, Oakdale, Orangeville, The Oaks, Werombi | 5,441 |
| 7 | 2768 | Glenwood, Parklea, Stanhope Gardens | 5,354 |
| 8 | 2761 | Dean Park, Glendenning, Hassall Grove, Oakhurst, Plumpton | 5,237 |
| 9 | 2340 | Bowling Alley Point, Calala, Carroll, Dungowan, Gowrie, Kingswood, Nemingha, Nundle, Oxley Vale, Somerton, South Tamworth, Tamworth, West Tamworth, Westdale, Woolomin | 5,173 |
| 10 | 2650 | Ashmont, Carabost, Collingullie, Cookardinia, Downside, Glenfield Park, Harefield, Kooringal, Lake Albert, Mount Austin, Tolland, Turvey Park, Wagga Wagga, Wagga Wagga South | 4,751 |
| TOTAL | 63,502 |
The head of the royal commission into misconduct in the banking, superannuation and financial services industry, Kenneth Hayne, recommended the preservation of current obligations. New lending to owner occupiers reached record highs earlier this year.
The federal government’s initiatives to bring in more first home buyers and single parents into the housing market as part of the budget were broadly welcomed by industry groups, but concerns remain about the role of low stock supply which is pumping up house prices.
“If the government gets away with its plan to axe safe lending laws people who are desperate to get into a rising housing market will be at risk of overexposure and people who need to refinance won’t be adequately protected,” Kirkland said.
Legislation for the repeal of lending laws was originally scheduled for December last year but has had trouble moving through the Senate.
