Walk The World Mortgage Stress is on the rise, as DFA has reported from our surveys. Roy Morgan research, who uses a different method to assess mortgage stress also confirms a rise.
This is driven by the cycle of interest rate hikes, despite low levels of unemployment. The third factor is the inflation rates which are putting costs pressures on many households too.
And we both agree that mortgage stress will continue to rise in the months ahead as the RBA continues to tackle inflation.
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I bought a property last year for a relatively cheap 750k…. My monthly repayments have ballooned to a level that I can no longer service my debt only if I cut consuming food… unfortunately not only can I not afford paying the loan, the value of my property has dropped by 12%. That means , even though I have a job I am in a lose lose position. Secondly trying to find a rental property in Sydney is an impossibility. Tell me Australia is not a basket case economy . We are hurting mate
Thanks Martin
RBA loves Inflation . IMHO .
You see term long cortisol saturated childrens brains is now a tactic of social warfare.
I'm mean just to protect some artificial banking system or whatever you want to call it these days is to me a form insanity or mental disorder.
I don't believe they yet understand that the stresses put upon them and to large scale the last few years as well as adding to it is going manifest more than just a few ugly nasty and very difficult problems
I've got no doubt mortgage stress is rising for some.
However, based on the traffic around Brisbane this longish weekend (assuming Friday 27th was taken off), the economy is still strong.
Still plenty of big dollar reno's and constructions everywhere.
The government seems to have people pouring into the country, which lifts unemployment, pushes wages down, and puts even more demand pressure on the capacity constrained economy.
All while having an extraordinary rental shortage, and high housing prices.
What a mess…
Hi Martin thanks for the great input you have to the Mortgage house market. We are building in Dawesville W.A and so far the builder has charged us $85,000.00 over and above the original contract price.
The builder blames the increase on Inflation & Labour cost to the 85K increase.
We have gone to 4 Banks & 3 Mortgage finance brokers and cannot borrow anymore to service the increases.
Our repayments have blooned by $1400.00 per month x 30 years of repayments.
I work offshore and earn fantastic money.
It looks like we are going to have to sell our unfinished home at a loss.
So my warning to everyone looking to build or buy DONT until the dust settles maybe in a couple of years.
P.S dont trust Real Estate Agents as we had one agencey out at the house Friday and tried to tell us he could get $250K more than what the property owes us and had buyers waiting.
Buy what you need not what you want!
Wait till the end of this year, there'll be many in stress.
Let the half brain debtslaves cheer on the corporate fascism until they realise it's just overpopulation agenda for the sake of private profits on slave games.
These cuxts deserve the full consequences of their own ideological reasoning.
Hi Martin thanks for all the hard work you do. Can you give any advice on how you think that BRICS deal will affect us down under,I see more and more countries are now selling their US debt and plan on abandoning the US dollar as the reserve currency. I read China,India,Russia,Japan and a few others are doing deals in other currencies. I also read that this will really affect the US economy and they will need to keep interest rates higher for longer,we seem to just follow the US ,monkey see,monkey do.
the problem has been created . the reaction is just starting . another 2 months the gov will offer wall streets solution
Time to return to multi generational homes again. The benefits are massive
When do you think the mortgage cliff will hit the cpi Martin? I am thinking September. Not really sure, but I think it will take considerably more time for consumer behaviour to adjust to current rates and further rate rises.
The Storm has officially finally arrived!
Thanks for the update mate.
I heard on the radio this morning, that some home-loans have been assessed/granted on misinformation regarding the applicant's less than truthful, financial outlays. The blame shifting MSM propaganda parrots, were up early this morning, mimicking what they're being told to say. Polly wants a cracker!🙄🦜
Deutsche Bank saying 4.1% terminal cash rate by August. There is carnage on the horizon.
Sold my property, mortgage increased from $1372 to $1950.
falling water level stress
Could a river finally run through the Glen Canyon Dam? By Jennifer Yachnin
My house is paid!! Good luck to you mortgage owners.
I was warning people of this last year, extremely low interest rates were like bags of lollies to children. So many people going into way to much debt Wether refinancing for extreme Reno's or simply borrowing beyond their means for that investment property or boats cars or anything else on their wish lists . Its bizarre that so many people believed that crap about interest rates not increasing until 2024 , simply by opening your eyes and looking what was happening with inflation and prices here and abroad it didn't take too much brain power to work out the same thing was coming our way . I suspect raising interest rates won't help inflation here as most of our inflation is imported , 2023 the year to pay the piper
Rising mortgage stress is an indicator for banks to rearrange mortgage payments for customers, and is a long way from a default…..at least 4 months for a stressed sale. Keep up the good work fore-warning the banks, Depression Financial Analytics, you are keeping people in their homes.
Why does Depression Financial Analytics talk down his own property? The property must be overlooking Thirroul Beach or something special?
What housing crisis?,the pseudo Government's,(all) largely sit on their complacent arrogant hands when they could be doing a hell of a lot more to get things right.
Is it just me but so many people feel a great demotivation to do anything as it is just too hard to try and tread water and save and buy a house , have a family etc . Is anyone else seeing this ?
If Australians had preconsidered this scenario ravaging Australians (by looking at other similarly over leveraged areas like HK, Singapore, Toronto, NY and San Fran ) …. Not like greed is not a regular passtime … This will liky have not happened. Sure the pollies have some blame … But they won't be in power if not for the greed of Australians.
How many are white collar and about to be laid off.
Things will begin breaking big time commencing mid-year. War is coming to Europe and supply chains are going to be constricted even further. Our so-called leaders have lead us to hell the last 3 years.
Where are the peace negotiators amongst our leaders.? Instead we are entrench in a war against an country that we can not possibly win against and that NATO and politicians refuse to acknowledge had a valid case for doing what they did.
The RBA will continue to raise rates while inflation continues to be above those rates. Apart from Divine intervention, the cat has long been out of the bag and there is nobody capable and willing to catch that cat.
G'day guys, 7.8% inflation rate,
BBBBWWWWHHHHAAAA
Thanks Martin for the research you do.
100% agree with Martins assessment of Mortgage stress. Cash flow, money in money out is a far better indicator than percentage of income.
Thanks Mr. Martin. Lovin' these figures Tory Liberal of Australia. Well done.
so if that cba guy was right then in march it should be close to 30% once those 1 mill loans move from their teaser rates most who bought in last 3 years will be in stress. Very keen to see these graphs in April.
This squeeze has created a ridiculous amount of fomo