With talk of a recession looming, it isn’t surprising that the early warning signs of financial stress are being seen in surging mortgage hardship claims and quick home resales, as reported recently by the ABC.
Data from CoreLogic shows a recent increase in homes reselling within a three year period, which many are attributing to mortgage stress.
That theory is supported by a recent ASIC report which indicated a 54% surge in mortgage hardship notices lodged with 30 major lenders during the last quarter of 2023 compared to the same quarter in 2022.
Lenders can provide assistance to borrowers who have suffered a temporary income setback affecting their ability to repay their loans for reasons such as a job loss, medical issue or relationship breakdown.
But sadly, a survey by ASIC showed that the most common reason given for the recent surge in mortgage hardship notices was ‘over commitment’ potentially caused by the shift from low-rate fixed rates to considerably higher variable rates.
If you are suffering from mortgage stress, try talking to your lender or researching your refinancing options.
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