New data from Digital Finance Analytics (DFA) has revealed that almost 52.4 percent of Victorians are struggling financially as they try to meet their mortgage obligations.
In the Casey region, Berwick and Narre Warren topped the list revealing that thousands of households are facing significant mortgage stress.
The DFA report highlighted that 100 per cent of 18,324 Berwick households are struggling with their mortgages; while, in Narre Warren, 94.4 per cent of 19,385 households are facing mortgage stress.
DFA data analyst Martin North says this is due to a combination of new trends in the housing market.
Including a significant increase in new purchases from first time buyers as well as “high loan to value loans” from home and land packages.
“(Mortgage) stress shows households have cash flow pressure, so they cut back on spending, and hunker down, leading to lower economic activity,” North told Real Estate.
“If this continues some people may eventually default on their mortgage, but this process takes a long time, and banks try to ‘extend and pretend’ by extending loan terms or offering interest only,
Vice president of the Casey Residents and Ratepayers Association, Anthony Tassone, has echoed the concerns in light of the DFA report.
“Right now, many families across Casey are doing it tough – really tough – with households cutting back on essentials just to keep up with their mortgage,” said Tassone.
“Mortgage stress isn’t just a statistic; it’s sadly becoming part of everyday life for too many local families.”
The City of Casey Mayor, Stefan Koomen says the council recognises that many in “the community are experiencing housing and mortgage stress” but that the council is “committed to supporting residents through these difficult times”.
“Mortgage stress is complex and is usually underpinned by a multitude of challenging issues,” said the Mayor.
Earlier this year the CRRA called for a rate freeze in the City of Casey’s 2025/26 Budget.
“[CRRA] noted that 38 per cent of households were already experiencing rent or mortgage stress and that 40 per cent had faced food insecurity,” said Tassone.
“Unfortunately, the Council still chose to lift rates by 3 per cent.
“In times like these, even a small increase hits hard and can push some households closer to the edge.”
Rather, the council has encouraged those struggling with their rate payments to reach out for flexible instalment plans.
“We understand that paying rates can be challenging for some households, and we’re here to help,” said Mayor Koomen.
”Council offers flexible payment options and encourages anyone facing financial hardship to reach out early so we can work together to avoid rate debt and interest charges.”
As people struggle to keep up with growing costs, North warns that this may encourage the rise in crime and family violence.
“More people (are) working more jobs, more social pressure, and eventually higher crime and family violence,” said North.
Over the last quarter, Casey has already seen a 23.4 per cent rise in crime from last year, according to the Crime Statistics Agency (CSA).
Likewise, the same CSA report revealed that family violence incidents in Casey have increased by 13.6 per cent from the previous year.
The CRRA says they welcome the State Government’s $4 million boost to Mortgage Stress Victoria who provide free legal and financial counselling to Victorians.
But ultimately, “more needs to be done in partnership with local councils, with local outreach, hardship support and early-intervention programs targeted to areas feeling the greatest pain”.
“We can’t just sit back and hope the Reserve Bank will ease the pressure through interest-rate cuts, hope is not a strategy,” said Tassone.
“Families need practical, coordinated action now from all levels of government to help them stay in their homes.”
