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Mortgage Stress Surges Across Australia for First-Time Buyers - BLOOMBERG
By Nasteho Said
- Brisbane, Adelaide, Perth have crossed threshold of stress
- High borrowing costs, surging property prices drove increase
Most major Australian cities are reporting mortgage stress among first-time home buyers due to still-elevated interest rates and ultra-high prices, according to property consultancy Domain Holdings Australia Ltd.
In 2019, only Sydney and Melbourne recorded mortgage stress — when repayments exceed more than 30% of household income — for entry-priced houses. Now, all major cities bar remote Darwin are affected, Domain said in a report released Thursday. For units, no city experienced mortgage stress in 2019, whereas now Sydney, Brisbane and Adelaide have crossed that threshold.
