Nearly one million mortgage holders experiencing “mortgage stress”

Another scary headline in the news this week: Nearly one million mortgage holders experiencing “mortgage stress” But when you read more into the stats, things aren’t nearly as bad as they may seem.  Over the last 12 months there has been a decrease in the estimated number of mortgage holders considered to be ‘At Risk’  and…

What's happening to mortgage buffers and net debt

One senses that the Reserve Bank of Australia (RBA) has been itching to do a piece on the increase in mortgage buffers and offset accounts, and it grasped the opportunity in the third quarter’s Bulletin.  Since the mid 2000s relatively slower growth in household debt and increases in interest-earning deposit balances (including balances held in…

City dwellers nearing mortgage stress

Property owners in capital cities are on the tipping point of mortgage stress. On average, 29 percent of household incomes being used to cover repayments, according to a new survey by comparison websites This falls just within the industry’s recommended maximum proportion of income to repayments of below 30 percent. The survey of more…

Avoiding mortgage stress - Part 1    |    Garth Brown

The common definition of “mortgage stress” is this: if you spend more than 30 per cent of your pre-tax income on your home loan repayments, then you are officially in the danger zone. There is no denying that a mortgage is a big responsibility, how do you cope when unexpected financial issues arise? When you…

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