More than 1500 households in the Shoalhaven have been paying the mortgage with no cash to spare at the end of the week.
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On Monday, a Four Corners report revealed alarming statistics that indicate a quarter of Australian households have been under mortgage stress.
In comparison to the nation’s average, Shoalhaven households have been faring well.
But local residents are not immune from mortgage stress.
“There are 1589 households under mild stress in the Shoalhaven which means they’re just about keeping their heads above water, they have no free cash,” Digital Finance Analytics spokesman Martin North said.
“The potential issue is, should interest rates rise, they won’t be able to make ends meet.”
The main drivers of mortgage stress are rising mortgage rates and living costs while real incomes continue to fall and underemployment has been on the rise.
There are 275 households in the Shoalhaven at risk of defaulting on their mortgage.
This means, in the case of an interest rates rise, cost of living rise, and income reduction, in real terms, over the next year in Australia, these residents will default on their mortgage.
