"I can't afford my Mortgage payments, I am 4 years behind in my Council rates"

https://rentflybuy.com.au

Mortgage arrears catching a growing number of Australian borrowers despite low interest rates

Perth mother Barbara Finlay found herself in that situation, after buying a property with her husband in 2011.

The trouble started when the couple split up.

"I didn't want to move out because rental prices are higher than what my mortgage was," she said.

"I didn't really want to upset my children, so I continued to stay on and pay all the bills on my own."

With interest accumulating, Ms Finlay is now $2,000 behind on her mortgage repayments, owes almost $10,000 in bills and is facing the very real prospect of losing her house.

"I've got rates that are three, nearly four years behind," she said.

"Water bills, everything, phone bills — they're all out of control."

Ms Finlay is now dipping into her superannuation to cover the debt, and living off food hampers from her local church to feed her family.

"You don't sleep a lot," she said.

Sally Auld said while arrears rates were still low by international standards, current economic conditions indicated the problem was likely to grow over the coming year.

"It's not our view that over the next six to 12 months the labour market is going to get a lot better," she said.

"It's not really our view that income growth is going to pick up a whole lot.

"I think what that tells you is this trend increase in arrears rates, is probably likely to continue over the next six to 12 months."

Ms Auld said a weak housing market was only adding to the problem.

"If you are in difficulty with your mortgage, it's very easy to exit that in a stronger housing market, because prices are going up, there is demand for property and it's easy to sell and get rid of the debt," she said.

(Source: Australian Broadcasting Corporation )