1 in 2 first home owners are contributing more than 30% of their income to their home loan.
More than half of first homeowners who purchased within the last two years are considered to be in mortgage stress, new research has revealed.
According to Mortgage Choice’s recent First Homeowner survey, 53% of respondents are contributing more than 30% of their after tax income to their mortgage.
While these are worrying statistics, the survey also shows the majority of Australians continue to make additional mortgage repayments.
Almost two-thirds of the surveyed respondents (62%) said they made additional mortgage repayments whenever possible, with 37% putting as much as they could afford towards their mortgage each month.
In addition, over half (53%) of the respondents said they had not changed their repayment strategy, despite the fact that many lenders have trimmed their interest rates in line with the Reserve Bank.
While it is tempting for first homeowners to reduce their mortgage repayments in line with any recent interest rate cuts delivered by their lender, it is comforting to see that mortgage holders have such a responsible attitude when it comes to their home loan.
Paying extra on your mortgage now can provide you with a certain level of comfort, knowing that you will be able to make your mortgage repayments if and when interest rates rise in the future.
Of course, contributing more than 30% of your after tax income to your mortgage repayments may not be a comfortable solution for everyone.For those who are experiencing mortgage stress or feel as though they may be getting into financial difficulty, help is available.
A mortgage broker can help you assess your financial situation and find a suitable solution for your needs, both now and into the future.
We are more than happy to provide you with a FREE home loan health check today.
Call Phone 3366 9982, visit our office at 465 Waterworks Road in Ashgrove, email us at: Stuart.firstname.lastname@example.org, or of course contact us directly through this website on the contact tab.
(Image courtesy of www.news.com.au 04/11/2013)