Highton named one Victoria’s worst suburbs for loan default risk

Hundreds of households are facing mortgage default risk in Highton, according to new research from Digital Finance Analytics. Highton homeowners are among the most at risk in Victoria of defaulting on their loans, with new analysis revealing a sharp jump in those teetering on the edge. Modelling from Digital Finance Analytics shows 409 households in the suburb run the risk of missing a mortgage payment in the next year, up 17.9 per cent on the previous quarter. The number ranks Highton in the top 10 Victorian suburbs with the highest volume of at-risk households. RELATED: Cheap green fixes could save you thousands Dozens of banks cut interest rates The key factor to boosting Geelong home prices revealed Melbourne southeast growth corridor and outer west dominated the list, earning the city the unenviable title of the most at-risk market by volume in the country. Mortgage stress – considered a red flag for future default and defined in the research as negative cashflow – also surged 14 per cent nationally in the three months to June. Digital Finance Analytics director Martin North said cash flow stress was increasing default risk as real incomes fell in the face of high inflation. H...