Sydney has 'world's worst' mortgage pain

Monday 11 October 2010

Article by Mozo

Sydney homeowners spend more on their mortgages than residents of any other major global city, it has been revealed.

According to the Daily Telegraph, a comparative global study has found that Sydney comes top in terms of the average percentage of income spent on mortgages.

This was put at $4,123 a month, or three quarters of the average monthly income.

In contrast, homeowners in Los Angeles and Toronto spend just a third of monthly income on mortgages while in Dublin and New York it is less than half and in London or Auckland less than two-thirds, the study found.

Aussies struggling with mortgage repayments could choose to compare home loans and consider refinancing. Speaking to the Daily Telegraph, Australia Property Monitors head of research Yvonne Chan noted that many first-time buyers are also being priced out of the market at present.

"We don't have the supply they do in the US, our lending criteria is more strict and the interest rate rises have priced out buyers," she said.

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