Almost a quarter of Australians have a financial buffer of more than a years’ wages in their mortgage, the results of a new consumer survey by Mortgage Choice has revealed.
According to the 2016 Money survey, 23.4% have the equivalent of at least 12 months wages sitting in their offset account or paid off their loan. By comparison, in 2015, only 13% of respondents said they were in the same financial position.
Mortgage Choice CEO John Flavellsaid the results are pleasing but not surprising.
“The survey found that the vast majority of mortgage holders are ‘very comfortable’ managing their debt. Of course, this data is hardly surprising when you consider that interest rates are currently sitting at 60 year lows, resulting in significantly lower mortgage repayments for most home owners.
“Of the respondents surveyed, 83.3% said they were either making additional mortgage repayments each month or had a decent amount of savings stored in their offset account.”
Across the nation, borrowers in Victoria and New South Wales had the biggest financial buffer in their mortgage, with 27.4% and 26% respectively stating that they have more 12 months wages in their home loan.
Western Australia was not far behind, with 24.3% stating that they had more than 12 months wages in their mortgage, while 19.8% and 19.5% of respondents in Queensland and South Australia were in the same position.
“It is interesting to note that Victoria and New South Wales are the front runners in this particular field, given that property prices (and therefore mortgages) are among the highest in the country,” Flavell said.