Home loans 'harder to get for key community workers'

Thursday 10 March 2011

Article by Mozo

Home loans in most Aussie capital cities are difficult for key community workers – such as police and teachers – to find because of the high cost of property, recent research suggests.

Key workers 'priced out of house market in capitals'

A study by Bankwest categorised 75 per cent of capital city council areas as "unaffordable" for this demographic, up from 70 per cent in 2005, reports the Australian Associated Press (AAP).

Ian Corfield, chief executive of Bankwest Business, commented: "This is particularly evident with the strengthening in the east coast property market in the last 12 months, which has stretched affordability for key workers in Sydney and Melbourne."

This comes after the AAP cited a report from the Economist that described Australian houses as the most overvalued in the world.

Mr Corfield noted that many of those struggling to purchase a house are essential to society, including nurses, fire fighters and ambulance officers.

With prices so high, taking steps to compare home loans might be all the more important for prospective buyers.

According to the research, Sydney has the highest prices, with homes at eight times above the average annual earnings of a key worker.

Have a question about home loans? Ask the money gurus at Mozo AnswersADNFCR-1761-ID-800454462-ADNFCR

Find great home loan deals

Which type of home loan would you like to compare?

Back to top