Aussies less confident in their ability to manage debt, new report shows

Font size :

The latest Household Financial Comfort Report from ME reveals a marked deterioration in the confidence of Australian households with regard to their ability to manage debt over the next six to 12 months. Out of 1,500 households surveyed, 10 per cent expressed this sentiment as compared to only five per cent in the past year.

ME’s overall Household Financial Comfort Index--which measures households’ perceptions of their financial comfort--dropped significantly by four per cent in the six months to June 2016. Only 10 per cent reported high comfort, as opposed to 90 per cent that reported low-to-mid financial comfort.

Baby boomers’ comfort fell the most out of any generation by seven per cent--the lowest level reported for that age group in the past two years. It is lower than Gen Y but still above Gen X. Retirees are still the most comfortable among all age groups, although they also reported their lowest levels of comfort since the survey began.

Renters are also feeling the pinch as their comfort level is significantly lower than homeowners and households paying off their mortgage. In fact, the gap continues to widen.

Financial comfort also fell in all states and territories, except in South Australia and North Territory, where financial comfort is highest despite the recent spike in the unemployment rate.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Sep 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords