New data shows Logan has the largest mortgage default levels in Queensland, almost doubling in the space of three months.
According to the latest S&P Global Ratings data, in the final quarter of 2022 the percentage of 30-plus days of mortgage arrears in the Logan-Beaudesert region sat at 0.97.
Now, in the first three months of 2023, it’s sitting at 1.84 per cent.
This 0.87 per cent increase secures the Logan-Beaudesert region a position in the top 13 highest default-level regions in the country.
There are 46,660 home mortgages in Logan-Beaudesert, as per the 2021 census.
Assuming mortgages are at a similar level in 2023, this means around 858 households have 30 days-or-more mortgage arrears.
In comparison, the default rate in Logan in 2011 was 2.1 per cent, putting Logan at the top spot in Queensland, according to credit-rating agency Fitch.
During this three-month period, interest rates sat at an unchanging 4.75 per cent; in the first three months of 2023, interest rates ranged from 3.35-3.6 per cent.
Financial counsellor from local family services organisation, YFS, Kristine Fry, said the YFS team had noticed an increase in defaults in Logan.
“We have seen an increase in mortgage arrears over the last few months and we expect this to get worse as people come off fixed interest rates,” Ms Fry said.
“We are also seeing more complex legal issues and more clients who are at risk of losing their homes.
She said YFS’ key message to clients was to “get in early and seek help”.
“The earlier you get help the more options you have,” she said.
“If you start to get behind in your mortgage payments talk to your lender and ask to defer payments or re-negotiate so you don’t spiral out of control.
“You may also be able to get a mortgage relief loan.”
Ms Fry said it was important those who receive a default notice “don’t ignore it”.
“Talk to your lender and council rates department and ask for their hardship team,” she said.
“A financial counsellor can help you assess your options; help you review your financial situation and advocate on your behalf with creditors and debt collectors.”
Bendigo Bank chief economist David Robertson said the rate of arrears was not as concerning as the rise of arrears.
“The fact that it’s [almost] doubled within a year tells you the impact of the RBA interest rates,” Mr Robertson said.
He said rate rises were a “blunt tool” severely impacting people.
“All households can do is review their budget and review their spending,” he said.
Mr Robertson said RBA ran the risk of “overshooting” their anti-inflation policy.
“Why do they need to keep putting up rates?
“That’s where there is the risk they overshoot, and they may have done so already.”
For those seeking advice, call YFS on 3826 1500 to talk to a financial counsellor or call the National Debt Hotline on 1800 007 007.
