A high number of Sydneysiders are defaulting on their mortgages, as the unemployment rate continues to climb.
One in 16 homeowners are defaulting on their mortgages, with the top area in NSW for mortgage defaults coming from Nelson Bay, north of Sydney, News Limited reports.
According to a study compiled by University of Western Sydney’s Urban Research Centre, unemployment in Sydney’s west is quite high, particularly in Fairfield and Liverpool, with 10.5 percent of residents out of work, compared with 5.9 percent the previous year.
As a result a high number of defaults are occurring in this area, including the suburbs of Greenacre, Guilford, Fairfield and St Marys.
The Federal Government has recently announced a plan to help struggling families with their mortgage payments, by allowing people with mortgages of up to $500,000 to legally request changes to the terms of their credit contract, making it easier for mortgage holders to negotiate changes to loan repayments if they have lost their jobs.
Borrowers will also be guaranteed fee-free legal representation through the Financial Ombudsman Service if they are refused credit by their lenders. (Read the full story here).