Survey: 1 in 5 Australian mortgagees admit they “borrowed too much”
A new survey has revealed more than 1 in 5 homeowners think they’ve taken on too much mortgage debt. Is this how you feel?
Residz Team 2 min read
Nearly 700,000 Australian households admit they borrowed too much on their home loan, according to a new survey.
The Finder survey revealed more than 1 in 5 homeowners (21%) think they’ve taken on too much mortgage debt.
For ‘generation Z’ buyers, 1 in 4 (25%) admitted they’d borrowed too much.
Given the average monthly repayment has grown nearly $1000 from $2231 to $3128, based on a $500,000 home loan, it’s not surprising the number of households in financial distress is growing.
Finder money expert Sarah Megginson said those who didn’t factor in rate rises could be feeling a lot of financial pressure now.
“Many Australians bought property during a record low interest rate environment and didn’t plan for what they’d do if rates went up.
“Now as interest rates skyrocket, many have been pushed to their financial limit -with further rises on the way.”
Some of Finder’s survey findings were:
Downsizing was a trend emerging as households look to decrease their expenses.
Men were more likely to say they were overcommitted (23%).
Women were less likely than men to say they had borrowed too much (19%).
Queenslanders (26%) the most likely to have regrets about the amount they borrowed.
New South Wales mortgagees (25%) were the next most likely to have regrets about large borrowing amounts.
Tips from Sarah Megginson if you find yourself in distress:
It's important to take control of the situation as soon as possible.
Call your lender today and ask if there's any wiggle room. You'll be amazed to see what they can offer you to prevent you from moving to another lender.
Consider refinancing to the cheapest rate in the market to lower your monthly repayments and to buy yourself some breathing room. The fees involved in refinancing are often more than offset by the savings you'll make.
Let your lender know immediately if you don't think you'll be able to make a repayment. You might be able to take a mortgage repayment holiday or move temporarily to an interest-only loan.
Residz can help buyers and sellers reduce the stress:
If you’re considering purchasing or renting a house, make sure you download our free property report for that address. We have 12 million addresses in our database, with every report offering information on internet speeds, crime trends, bushfire and flood risks, investability scores and a whole lot more.Would you like to sell your home and connect with home buyers willing to pay your dream price? Residz has the solution, for zero dollars. Put a DreamPrice on your home to test interest. Read about DreamPrice(™) here.
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