By Danielle Kutchel
Thousands of households across the City of Casey are experiencing mortgage stress.
Data release by Choice and collected by Digital Finance Analytics in April 2021 has revealed that two postcodes in Casey are in the top 10 for mortgage stress across the country.
Postcode 3805 – covering Fountain Gate, Narre Warren and Narre Warren South – and postcode 3806 – covering Berwick and Harkaway – came in at fifth and sixth on the national list respectively.
In Victoria, Casey has three of the top ten postcodes in mortgage stress.
In addition to 3805 and 3806, postcode 3977 has made the list – including Cannons Creek, Cranbourne, Cranbourne East, Cranbourne North, Cranbourne South, Cranbourne West, Devon Meadows, Five Ways, Junction Village, and Skye.
According to the data, 8919 households are in mortgage stress in postcode 3805, followed by 8292 in postcode 3806 and 6139 households in postcode 3977.
Patrick Veyret, banking spokesperson at Choice, said mortgage stress in this case was defined as a measure of a household’s cash flow.
“If the household has greater expenses than income and a mortgage features as part of their budget then they’re classed as being in mortgage stress,” he said.
“During the Covid pandemic there is increasing strain placed on household finances.
“We’ve seen this with wages stagnating, government support tapering off and underemployment and unemployment still rising.
“We know households out there are doing it tough. Mortgage stress is just one example of the financial hardship that’s occurring.”
The data comes as the City of Casey ponders a rate rise of 1.5 per cent across the municipality in the coming financial year.
The rise is intended to help the City of Casey to spend on the projects outlined in its Draft Capital Works Program 2021/22 as it recovers from the Covid-19 pandemic.
In a statement, City of Casey chair of administrators Noelene Duff said the council was aware of the mortgage stress data.
She said the decision on the proposed rate increase – which complies with the State Government’s rate cap – was “not easily reached”.
“We acknowledge the financial hardship that many of our residents and ratepayers continue to face,” she said.
“Where possible, council is providing flexibility to affected community members and encourages anyone unable to meet their due date for rates to get in touch with us as soon as possible to make arrangements and discuss potential relief options.
“Hardship relief includes interest freezes on outstanding rates from 1 March 2020 to 30 June 2021, and a decision to not pursue legal action on outstanding rates in 2019/20 and 2020/21.”
The council will consider future hardship relief measures in the coming weeks.
It’s not all bad news for mortgage holders, with Mr Veyret stressing that help is available.
Mr Veyret recommended those struggling to manage their bills contact the National Debt Helpline, which provides a free, independent and confidential financial counselling service.
“Just know you’re not alone, and more importantly, people are out there to help you,” he said.
The National Debt Helpline can be contacted on https://ndh.org.au/ or 1800 007 007.
Other organisations can also provide assistance, including Cranbourne Information and Support Service, and South East Community Links.
