Photo by Luisa Denu on Unsplash
Queensland tourist destinations were nine of the top ten regions for mortgage deferrals in the first wave of COVID lockdowns.
That's according to new analysis from credit reporting agency Equifax, which found Noosa, Surfers Paradise, Coolangatta and the Whitsundays had the highest proportion of deferrals compared to the national average.
Looking to compare low-rate, variable home loans? Below are a handful of low-rate loans in the market.
Lender | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Variable | More details | ||||||||||||
FEATUREDUNLIMITED REDRAWSSPECIAL OFFER | Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
| ||||||||||||
Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)
| |||||||||||||
Variable | More details | ||||||||||||
FEATURED100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES | Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
| ||||||||||||
Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)
| |||||||||||||
Variable | More details | ||||||||||||
NSW/VIC/SA METRO & INNER REGIONAL AREAS | Variable Home Loan (Principal and Interest)
| ||||||||||||
Variable Home Loan (Principal and Interest)
| |||||||||||||
Variable | More details | ||||||||||||
REFINANCE ONLY | Variable Rate Home Loan – Refinance Only
| ||||||||||||
Variable Rate Home Loan – Refinance Only
| |||||||||||||
Variable | More details | ||||||||||||
NO ONGOING FEESFREE REDRAW FACILITY | Live-in Variable Loan (Principal and Interest) (LVR < 90%)
| ||||||||||||
Live-in Variable Loan (Principal and Interest) (LVR < 90%)
|

- Fast turnaround times, can meet 30-day settlement
- For purchase and refinance, min 20% deposit
- No ongoing or monthly fees, add offset for 0.10%
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 28, 2022. View disclaimer.
General Manager Advisory and Solutions at Equifax Kevin James said the data revealed the extent of the damage to the tourism-dependent Queensland regions.
“Tourism is a major industry for Queensland, and with international and domestic visitors curtailed during the pandemic, tourist hotspots have faced reduced occupancy rates, lower incomes and higher levels of unemployment leaving mortgage holders feeling the pinch," Mr James said.
"With the Queensland border beginning to reopen to parts of NSW and SA this week, we expect to see a bounce back as tourism dollars start to flow back into the region."
Proportion of mortgage deferred by accounts
Source: Equifax
The release of the data coincides with the Queensland eviction ban ending today, with the state the only one in Australia deciding not to extend the moratorium on residential evictions.
Melbourne suburbs show signs of heightened mortgage stress
Tullamarine-Broadmeadows on the outskirts of Melbourne was the only non-Queensland location to make the top ten list of mortgage deferral hotspots.
However, several other Melbourne fringe suburbs also showed signs of heightened mortgage stress in May when the data was collected.
Analysis showed Wyndham, Casey-South, Whittlesea-Wallan, Melton-Bacchus Marsh, and Boroondara all had a high number of mortgage deferrals compared to the national average.
Number of mortgages deferred by accounts
Source: Equifax
Mr James said the financial hardship seen as these suburbs could be attributed to a higher prevalence of lower socio-economic suburbs, with low-income households and young people just starting out on the property ladder.
“COVID-19 is having a particularly negative effect on the employment of young people," he said.
"For those without significant savings, it isn’t easy to service a home loan when cash flow dries up.
"We know Melbourne’s second lockdown will have further exacerbated the difficulties we’ve seen in our initial analysis on the available May data."
Middle-aged Aussies struggling to pay their mortgage
Equifax found Australians aged 36 to 45 were the most likely age group to defer their mortgage repayments through the pandemic.
“There are more middle-aged people seeking mortgage payment relief than any other age group," Mr James said.
This group is likely to have relatively high outstanding mortgage balances and may have been harder hit with business lay-offs or lower-income from JobKeeper payments.”
The 26 to 35 age group fared only marginally better, accounting for the second-largest number of mortgages deferred.
Over 66-year-olds also had higher levels of deferrals, which was likely a reflection of deferred investment property loans.
Proportion of mortgages deferred - age by account
Source: Equifax
Disclaimers
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.
Latest Articles
- Struggling with a loan repayment? New credit reporting changes will protect Aussies in financial hardship
- 6 home renovation projects that may increase your re-sale value
- Westpac increases under-30s savings account rate to 2.50% p.a.
- Which lenders still offer cashback on mortgages?
- Should I press savings, credit or cheque on a EFTPOS machine?
Latest News
Which lenders still offer cashback on mortgages?
June 28, 2022
Be Savings smart.
Subscribe for free money newsletters.
to the Savings Privacy Policy