11 September 2018

LEVELS OF MORTGAGE STRESS ACROSS THE HUNTER MEANS ACTION IS REQUIRED

Member for Charlestown, Jodie Harrison today revealed that over 38,000 people are currently in Mortgage Stress across the Hunter.

As interest rates look like they will begin to rise and with housing and rental affordability still a major issue in the area, Ms Harrison has called on borrowers and financial institutions to take measures to prevent people in the electorate of Charlestown losing their homes.

With news today that 38,298 households in the Hunter are in mortgage stress and 1,369 Hunter households are at risk of defaulting on their mortgage (to the tune of $114million!) I, along with other Labor colleagues, have written to the Australian Banking Association urging them to ensure banks and financial institutions take a fair and understanding approach to people under this pressure, Ms Harrison said.

I also urge borrowers to make an appointment early with their financial situation if they are beginning to find it difficult to cover their mortgage payments.

To have over 38,000 people across the region in mortgage stress is something that should be concerning to everyone.

We have a situation where wages have flat lined, there is an increasing casualised workforce particularly in my electorate of Charlestown - and massive cost of living pressures including power bills, food and childcare all piling up on families.

Banks have recently made record profits on the back of a massive property boom and given the fact that the Royal Commission has highlighted some seriously bad behaviour by financial institutions I am calling on them to take a very fair and proactive approach when they are dealing with customers who are struggling.

Additionally, I am urging my constituents who are suffering mortgage stress to contact their financial institution as soon as possible so that alternatives can be put in place to try and prevent people from losing their homes.