Mortgage market contracts, mortgage stress grows
More than half of mortgagees have loan repayments of more than 30 per cent of their gross income according to a survey by Deloitte. A majority of those people said they were ‘stretched' or at their repayment limit. While the pressure on repayments had not yet translated into increased arrears and defaults, if unemployment continues to rise mortgage problems can be expected to follow said Deloitte banking partner Graham Mott. The research found that mortgage market has contracted by twenty per cent since September 2007 to less than $20 billion worth of mortgages sold monthly.
Source: The Australian Financial Review