Many Australians 'ahead with mortgage repayments'

Wednesday 26 September 2012

Article by Mozo

A new report from the Reserve Bank of Australia has revealed that a large number of people in Australia with mortgages and home loans are attempting to pay them off early.

Many Australians 'ahead with mortgage repayments'

Australians tend to pay off their mortgages far faster than their counterparts in other wealthy, developed nations, meaning that the country has a powerful buffer against economic collapse, according to the report.

Some 15 per cent of borrowers are two years or more ahead on their repayments, while 40 per cent of investors are in front.

"Borrowers are repaying their mortgages ahead of schedule and are building up buffers they could draw on to stay current on their loan repayments if their incomes were to fall," the report explained.

This could partly be down to a sense of caution as the global economic crisis causes uncertainty in the domestic market.

The Australian Property Institute claims that house prices are expected to rise in Sydney over the coming months.ADNFCR-1761-ID-801456901-ADNFCR

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