Home loan debt is on the rise
Homebuyers are in nearly twice as much debt as they were five years ago, new figures show.
Research by the Reserve Bank of Australia reveals that total housing debt hit $910.1 billion in December last year – a rise of 92 per cent on December 2004, News Limited reported.
AMP Capital Investors chief economist Shane Oliver said there is a danger that home loan borrowing could outstrip income growth.
He told the newspaper: "It’s a worry that we have such a high level of household debt. Over the past 20 years we have gone from the low end of comparable countries to the high end".
According to the RBA figures, total housing debt in Australia could reach $1 trillion within a year.
Such news may encourage potential property buyers to compare home loans in search of the best borrowing terms. Last week, Loan Market chief operating officer Dean Rushton told the Australian Associated Press that despite the huge rise in the demand for 100 per cent home loans, most borrowers will struggle to secure such loans from the major lenders this year.
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