Consumer group CHOICE has released postcode data showing significant parts of Western Sydney and Melbourne’s west are already in mortgage stress as the Federal Government vows to remove vital protections. The data comes as One Nation has publicly rejected the Government’s plans to repeal safe lending laws.
The 10 crisis suburbs for New South Wales and Victoria represent over 130,000* households on the brink. The top 10 suburbs nationally for mortgage stress cover urban and regional parts of New South Wales, Victoria, Queensland and Western Australia, based on analysis provided by Martin North at Digital Finance Analytics.
*NSW – 63,502 and VIC – 70,526. Data from Digital Finance Analytics, collected in April 2021. Full postcode data available in Editor’s notes.
“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.” says CHOICE CEO Alan Kirkland.
“Safe lending laws were put in place to avoid the huge damage to families and communities caused by mortgage stress – by making banks take care to avoid giving people loans they won’t be able to afford to repay.”
“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.”
“We’re glad to see more and more Senators – most recently Senator Hanson – stand up to the banks and the Government. 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” says Mr Kirkland.
The repeal of safe lending laws has spectacularly stalled in the Federal Senate, the legislation originally scheduled for December 2020 has repeatedly failed to progress. The repeal is now in limbo, with a growing number of Senators confirming they will vote to block the Government’s changes. Crossbench Senator Pauline Hanson has yesterday publicly rejected the repeal.
“We call upon the Government to ditch its irresponsible plan. Now is not the time to give more power to the banks,” says Mr Kirkland.
Over 39,000 Australians and 125 organisations have signed an open letter calling on Parliamentarians to save safe lending: choice.com.au/safelending
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