Consumer group CHOICE has released data revealing the top 10 South Australian suburbs in mortgage stress. Paralowie and surrounding suburbs (5108) tops the list with over 5700 households in mortgage stress, as analysed by Digital Financial Analytics. 

*Data from Digital Finance Analytics, collected in April 2021.

"Households across South Australia, especially those in Adelaide are struggling with mortgage stress. People are being forced to make difficult financial decisions to meet their mortgage repayments," says CHOICE's banking policy expert Patrick Veyret.

"While the early indicators of Australia's economic recovery are welcome, many South Australian families are faced with high levels of underemployment, stagnant wage growth, and key government support measures being wound back."

"There is a perfect storm in South Australia emerging with rising levels of mortgage stress, record new home lending, ultra-cheap credit, and soaring house prices. First home buyers are being forced to take on more and more debt simply to enter the housing market."

This data comes as the Federal Government's controversial plan to roll back safe lending laws continues to fail to gain enough support in the Federal Senate. The legislation which was meant to be legislated in December 2020, remains in limbo, as more crossbench Senators have come out against the reforms. 

"The logic of the Government's harmful policy to axe safe lending laws does not stack up. New lending for home loans is booming in South Australia. People are able to access credit. The Federal Government has created a harmful solution in search of a non-existent problem," says Mr Veyret.

"Crossbench Senators Rex Patrick and Stirling Griff have an opportunity to protect the South Australian community, particularly vulnerable people doing it tough, and speak out against the Government's harmful policy to remove lending protections," says Mr Veyret.

Media contact: 0430 172 669, media@choice.com.au

Editor's notes:

Top 10 South Australia postcodes in mortgage stress (by count)