Citibank’s annual financial survey for 2014 reveals 25% of Australians now own their homes outright, a significant increase from 2007’s 16%.
Homebuyers are taking advantage of the record-low interest rates less than 5% to slash off debts and pay their mortgages in full. Analysts are confident this trend will go on this year.
A slight increase, however, is seen in the number of Australians paying off a home loan, from 38% in 2007 to 41% in 2014.
“They either accumulate cash or they start to deleverage their debt,’’ said Dierdre Wroth, Citibank’s head of banking solutions and wealth management.
“We’ve seen different aspects of people managing their debt, paying down the mortgage has become easier and rates are lower. They are very happy to put those funds into their mortgages rather than just put money into a bank account.”
Recent RBA figures also show Australians on average are now more than two years’ ahead on their mortgage repayments.