Revealed: 139 Australian suburbs trapped in mortgage arrears loop

State arrears trends. Source: S&P Global Ratings Thousands of homebuyers across 139 suburbs are at ground zero of a widening mortgage crisis, as new data shows arrears escalating off high rates, falling property values and zero escape Fresh data from S&P Global Ratings – released Thursday – found outer-suburban fringe postcodes across Victoria and New South Wales dominating the nation’s worst-performing home-loan arrears lists as of June 30, with one Queensland location also hitting the top 10 hardship list. S&P Global director of structured finance ratings, Erin Kitson, warned that recent buyers who entered the market with minimal deposits were bearing the brunt of it in the midst of the housing price downturn and higher rates. Pakenham tops the country in worst mortgage arrears levels – an area that was the hope for housing supply a decade ago. “In Victoria – the Point Cook, the Pakenhams, the Hoppers Crossing – these are all areas which are generally in the more fringe part of capital cities,” she said. “Areas where they’ve expanded in the last few years because they are the more affordable parts of the city… where you’re probably likely to see more first homeowners ...