Delinquent mortgages hit record highs in Western Australia, Tasmania and the Northern Territory

Delinquent mortgages hit record highs in Western Australia, Tasmania and the Northern Territory, by WhoCrashedTheEconomy.

Interest rates might be at record lows, but delinquency rates have hit record highs in Western Australia, Tasmania and the Northern Territory. In South Australia, delinquency rates are just 0.1 per cent shy of the record.

The housing bust in Western Australia and wage deflation has contributed to mortgage arrears hitting 2.33 per cent, surging 0.69 per cent in the past year. Nationally, delinquencies have risen in every state and territory.

The number of delinquent mortgages in Australia is at three year highs and is likely to rise further, according to Moody’s Investors Service. Mortgage holders more than 30 days late on their mortgage currently stands at 1.5 per cent, and is nudging towards the 1.59 per cent record recorded in April 2013.

Australians have the highest level of household debt in the world.

Commenter Sarah:

I currently work in debt collection for one of the smaller banks and what I see on a daily basis is frightening. The amount of people who are claiming for early super release under hardship grounds to cover mortgage arrears is HUGE!

I regularly speak to people so stressed by their financial situation they are often in tears. Once unemployment starts increasing across the Country and it will, it’s already happening,the shit will really hit the fan! …

There are so many delinquent accounts on referral that we cannot keep up with the work load!

Many people are really screwed. Not only are they unable to find tenants in many cases but they are also finding they can’t sell either. Obviously people cannot borrow ludicrous amounts of $$$ without income. …

Also, another thing I’m noticing is many people are wanting to refinance onto interest only loans and banks are declining applications. When customers need to consider this as an option when interest rates are at historical lows is really telling. So many people are hugely over committed and are scratching for solutions and realizing they’re stranded in the middle of nowhere without any fuel.

Not hearing about this in the media. Maybe only happy-talk is allowed on the economy, based on the misguided Keynesian belief that animal spirits and psychology are what keeps people spending, which drives the economy.

(No, they have the cart before the horse, leading to Keynesian schemes to intervene in the market by manufacturing money and by artificially creating the appearance of demand. The economy suffers from this misinformation in the long run, which, as the above indicates, eventually arrives. To say nothing of the inequities involved in who gets the new money, and the creation of a casino economy with ridiculously high incomes for a few. Or maybe that’s the point.)