First home buyers struggle to pay off their mortgages

Font size :
For most first home buyers in Australia these days, it is a choice between struggling now or in retirement. And many of them are choosing to struggle now, as the average first home buyer’s home loan has been on the increase in the past years. In fact, according to the latest Adelaide Bank/Real Estate Institute of Australia housing affordability report, those who bought a house this year instead of last year had to borrow and extra $175 per week just to keep up with their repayments.

But every first home buyer in each capital city has a different way of paying off their loans. For example, in Melbourne, where the median price is one of the highest in the country, Helen Marsh and partner Matt Archer had to do a balancing act when it comes to their cash flow. They are repaying an interest-only mortgage over 30 years because this was the only way they can afford to buy a home. They are also funneling savings into an offset account in order to reduce the amount of loan they need to pay interest on.

Lifestyle change is also a huge part of the deal. Even in Perth, where the median house price is considered one of the lowest in the territory, borrowers have to adjust the way they live, especially in the face of reduced income. Such is the case for couple Jaime Buller and Jasmine Rhodes, who is having a baby later this year.

“If either of us wanted to have a change of career or do something different or just take a break from our respective careers, we wouldn’t really be able to take much of a pay cut—or at all,” Rhodes said.

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

Quirks in the QLD property market investors should be aware of Quirks in the QLD property market investors should be aware of

Interstate buyers should familiarise themselves with these quirks to avoid investment blunders Read more

CBA unveils new repayment simulator CBA unveils new repayment simulator The simulator will show customers the differences between different types of repayments ... Read more

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

More mortgage news and articles

Sponsored Links

Wednesday, Sep 27, 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