NSW mortgage default risk spikes with thousands of households stretched

Australia has hit its highest risk of mortgage defaults in 25 years and a looming interest rate hike threatens to leave many families teetering on the edge of crisis. New analysis revealed the sharpest quarterly uptick since records started in 2001 with an 18 per cent increase in average national risk of missed mortgage payments. Outer suburbs around major cities regularly rank as the most vulnerable and NSW saw a 25 per cent jump in mortgage default risk in the same three months. Mortgages are foundational business for banks and increases in defaulted loans can start to impact the economy. MORE: Inflation bombshell shows rate hikes backfiring Mortgage default risk has hit an all time high. The latest Default Loan Report by comparison group OurTop10 estimates almost 4,000 NSW households are close to defaulting in just the 10 most stretched postcodes alone. According to OurTop10 director, Mansour Soltani, “stress tells you who is struggling this quarter. Default risk tells you who may not make it through the cycle.” Gosford, Wyong and Campbelltown are the most risky NSW areas followed by Beaumont Hills, Hornsby, Bateau Bay, Turvey Park, Liverpool, South Tamworth and Goonellabah. MOR...