Mortgage pressures rise in Brisbane and Melbourne
Article by Mozo
First-time home buyers in Brisbane and Melbourne now face mortgage pressures on a par with Sydney, new research shows.
According to a study by the National Centre for Social and Economic Modelling (NATSEM) at the University of Canberra, more than half of first home buyer (FHB) households in the three major capitals now pay more than 30 per cent of their disposable income on housing costs, which is a commonly used definition of mortgage pressure.
Over the past decade, mortgage pressure remained stable in Sydney at 56 per cent of people exceeding the 30 per cent watershed.
However, this figure has increased markedly in Brisbane to 58 per cent of buyers, up from 43 per cent ten years ago and to 53 per cent in Melbourne, up from 36 per cent.
"The higher pressure on first home buyers is driven by disposable incomes growing by just 64 per cent compared to house prices growing by 132 per cent over the past decade," principal researcher Ben Phillips said.
Australians struggling with rising mortgage repayments could choose to compare home loans in search of better deals. According to NATSEM, nearly one in every two FHB households across Australia now spend more than 30 per cent of disposable income on housing.
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