Australians struggling with mortgages
New research has found Australian borrowers are struggling with their mortgages in spite of record-low interest rates.
A study by UBank has found 25% of borrowers are experiencing stress due to their home loan repayments, the Daily Telegraph has reported. The study found borrowers were sacrificing holidays, social events and time with family in order to meet their mortgage payments.
According to the Daily Telegraph, 56% of the survey’s respondents said they had missed out on time with their children to earn more money to meet home loan repayments, while 54% said they had sacrificed a family holiday due to financial pressures. Around 59% said they had cut a family holiday short because of financial strain due to mortgage repayments.
UBank chief executive Lee Hatton said 50% of homeowners had declined at least two social outings a month in order to meet their mortgage repayments. She said many borrowers were over-committing.
“What we are seeing are people buying houses or ‘the dream’ which is too big for their needs,” she told the Daily Telegraph.
- House prices fall across the nation, led by a 1.2% drop in Sydney
- Non-major lender market share hits all-time high
- Westpac announces Velocity Frequent Flyer offer for home loan borrowers
- You can buy an entire Californian ghost town for the price of a 3 bed house in Sydney
- Renters, 30% of you won’t get your bonds back: Know your rights and protect yourself