TY  - RPRT
AB  - This research examines the sources, nature and implications of mortgage default among Australian home owners. The sub-prime crisis in the US has starkly illustrated the connection between housing and economic factors. In 2010, the number of households in severe mortgage stress could exceed 250,000, based on Fujitsu estimates. The survey cohort of households receiving claims of possession from mortgage lenders was characterised by: a fairly even age spread between 35 and 54 years, with relatively small numbers of younger and older defaulters; low-to-moderate incomes; and conventional motivations for home ownership – e.g. security, pride, investment value. Defaulting households generally: had high initial loan-to-value ratios (LVRs), varying positively with income; paid relatively high mortgage interest rates; began experiencing difficulties more than one-year after taking on their mortgages; and are more likely than all Australian purchasing home owners to borrow from sources other than the banks. Only a minority of severely stressed mortgagors surveyed sought independent financial advice. Those who sought advice early had more options than those who waited, and accumulated less debt. Independent financial advice for borrowers, particularly those taking out their first loan will help to reduce the incidence of mortgage default. 
AU  - Berry, Mike
AU  - Dalton, Tony
AU  - Nelson, Anitra
CY  - Melbourne
L1  - internal-pdf://3135608843/AHURI_Final_Report_No145_Mortgage default in A.pdf
M3  - FR
NV  - RMIT
PB  - Australian Housing and Urban ÂþÌìÌÃÈë¿Ú Institute Limited
PY  - 2010
ST  - Mortgage default in Australia: nature, causes and social and economic impacts
T2  - ÂþÌìÌÃÈë¿ÚFinal Report No. 145
TI  - Mortgage default in Australia: nature, causes and social and economic impacts
UR  - /research/final-reports/145
ID  - 79
ER  -