Higher percentage of income being spent on mortgages

Font size :
Moore Stephens’ economic and market outlook for Australia has found that shortage in supply, particularly in places like Sydney, has boosted housing values.    
 
“The average new mortgage in Australia is now $443,000, and in NSW $544,000. In Sydney the average property price now equates to around 9 times average household income, up from around 4 times 20 years ago,” the study stated.
 
“The sheer size of the new mortgages has meant that a disproportionate percentage of household disposable income is now allocated towards paying off a mortgage and therefore less is available to spend on other areas such as food, retailing and entertainment.”
 
Moore Stephens also warned that if the country continues to see slow consumer spending with the rates at their all-time low, the worse could come for heavily indebted households when rates come rising again.
 
“The only way for household debt to fall to more manageable levels is for house prices to fall. This can only occur if we see a significant increase in supply of properties to offset demand so that we see both a fall in prices and rents,” the study added.
 
“Supply needs to continue to build, certainly in Sydney, to address the demand equation.”
 

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

Friday, Sep 22, 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