Expect more economic carnage

At the peak of the GFC, mortgage stress was at 1.2% of the country’s total mortgage book. Today it is tracking at 0.4%.

However, in the past or two to three months, Royle has seen people coming to the end of their tether. “Interest rates are not going to come down anytime soon and it is going to be hard for a lot of people. I am expecting another wave of mortgagee sales in the next few months, unfortunately.

He says, while iLender has some great products to restructure mortgage lending, all they do is buy time when it would be better to sell up in the normal way.

The common theme so far in mortgagee sales has been predominantly self-employed people who have been the victim of another company collapse, Royle says.