Whitsundays worst for mortgages

THE Whitsundays has the highest proportion of residents struggling to pay back their mortgage in the state, new data has revealed.

A study by global information solutions company Equifax revealed 12 per cent of Whitsunday residents with a mortgage had difficulty paying it off.

The region had the highest proportion of mortgage referrals for Queensland in May 2020, and the second-highest in the country.

Nine of the top-10 regions for mortgage deferrals were in Queensland and included other holiday destinations such as Noosa, Surfers Paradise and Coolangatta.

Equifax general manager of advisory and solutions Kevin James said there were a few reasons for high deferrals Whitsundays, the most being a lack of tourism.

“Tourism shutting and international travel shutting has definitely put pressure on it, there’s no doubt about it,” Mr James said.

He said people working in the tourism sector may have struggled to pay back mortgages because of job losses.

Residents working outside the sector may also feel the pinch, as many who own several properties and rent them as holiday houses had lost a major source of income.

Mr James also said the market value of houses in the region were above average and the mortgage repayments would likely be higher compared to the rest of the state.

While operators and owners have reported a boost in numbers during the school holidays, Mr in the likely

James said the impact this would have on mortgage repayments would be a “watch and wait” situation.

“If tourism comes back and employment comes back and everything comes back, they may be able to right themselves,” he said.

“But if there’s a slow uptake and it doesn’t come through the peak periods of Christmas and through summer, there’s really a chance that 10 per cent of the population will have some serious challenges.”

Mr James said this might prompt residents with several properties to sell, therefore swinging the real estate market in favour of buyers.

A combination of government support and a return to business as usual were flagged as ways to pull the Whitsundays out of trouble.