housing affordability crisis worsens, page-89

Mortgage stress expected to surge
Posted 3 hours 19 minutes ago

The number of Australian households enduring mortgage repayment stress is tipped to rise above 600,000 in coming months.

A report from Fujitsu Consulting and JP Morgan indicates 113,000 of those might be so severely stressed they will be forced to sell their home.

Fujitsu Consulting spokesman Martin North says rising interest rates in the troubled credit markets will push home borrowers to a tipping point.

"What we're finding is our modelling is suggesting that this base of stress is growing quite significantly from its battler sector, into the young growing families sector and into middle suburbia," he said.

JP Morgan says the problem is being masked for the moment by excessive use of credit cards