The 20 biggest suburbs for mortgage defaults

Angus Kidman 27 August 2015

The 20 biggest suburbs for mortgage defaults

Behind on your mortgage? There's a fair chance you live in Budgewoi.

Tasmania is the state most likely to see home buyers in arrears on their mortgage, according to data compiled by Fitch Ratings and reported in the AFR.

Each quarter, Fitch calculates the percentage of mortgages which are more than 30 days in arrears relative to the total mortgaged property value in a given postcode. On that ranking, Budgewoi on the NSW Central Coast has the highest proportion of home owners who are behind on their mortgage.

Here are the top 20 suburbs and towns in that ranking:

Suburb% loans in
30+ day arrears
Budgewoi NSW3.2%
Kingston Qld3.0%
Petrie Qld2.8%
Corio Vic2.7%
Greenacre NSW2.6%
Melton Vic2.4%
Hampton Park Vic2.4%
Laidley Qld2.4%
Salisbury SA2.4%
Ballajura WA2.3%
Goodwood/Motrose Tas2.3%
Jimboomba Qld2.3%
Green Valley NSW2.3%
Bundamba Qld2.3%
Aldinga SA2.3%
Parafield Gardens SA2.2%
Mount Isa Qld2.2%
Claremont Tas2.2%
Hoxton Park NSW2.2%
Lalor Vic2.2%

While high levels of unemployment can be a factor, not all these areas are downmarket or shrinking. Salisbury, for instance, is the fastest-growing suburb in South Australia.
Banks regularly rate suburbs and areas by perceived risk and use that data to assess whether to offer loans. While that can impact your ability to get a mortgage, it's worth noting that the vast majority of mortgages are not in arrears.

Picture: John Lampard, licensed under Creative Commons Attribution-NonCommercial-ShareAlike 2.0 Generic (image cropped)

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