Eddie Russell
Homeowners in Melton are feeling the crunch of living in their own house, analysis from the West of Melbourne Economic Development Alliance (WoMEDA) has revealed.
According to WoMEDA, Melton has the second highest level of mortgage stress in Victoria.
More than 10 per cent of households in Melton experienced mortgage stress in 2023, compared to the national average of 6.5 per cent, the WoMEDA analysis found.
Community legal centre Mortgage Stress Victoria provides free help to people experiencing mortgage stress through its team of specialist lawyers, financial counsellors and social workers.
MSV chief executive Nadia Harrison said Melton was overrepresented, with nine per cent of its clients from the area.
“Obviously the Melton [local government area] is one of 79 in the state, so that’s a very disproportionate cohort,” she said.
Mortgage stress is defined as a household that allocates more than 30 per cent of its income to mortgage repayments. It impacts people’s disposable income and household consumption.
Ms Harrison said “a high proportion” of those seeking help are young families and migrants.
The WoMEDA report revealed four in 10 Melton residents are mortgage holders, compared to the Australian average of one in four.
Mortgage stress is also high in Wyndham, which had the ninth highest rate in Victoria at 8.8 per cent. This is up from 5.7 per cent in 2021.
Ms Harrison said homeowners in Melton, Wyndham, and Brimbank all suffered more than most places in Australia.
“Our data reflects that mortgage stress is highest in the growth corridors – areas squarely within the outer suburban fringe,” she said.
“It’s really what people loosely call the mortgage belt; that outer suburban corridor and peri-urban areas.
Confronting the issue as soon as possible was the best thing to do, Ms Harrison said.
“It’s never too early to get help. The overwhelming majority of our clients come to us at the early stages of mortgage stress, and we far prefer that before the debt has spiralled into crisis,” she said.
“It’s much easier to manage and it’s much better for the client.”
