Average interest rates higher in some suburbs
New data shows some suburbs are paying double the typical rate.
Data gathered by HashChing has laid out some of the suburbs in Australia’s capital cities that are paying on average substantially more on their home loan interest rate, reported news.com.au. HashChing analysed more than 1,000 mortgage applicants over December 2016 and January 2017 to get an idea of the interest rates people we paying.
The Sydney suburbs of The Ponds, Doonside, Quakers Hill, Campbelltown and Stanhope Gardens all were paying up to 7.8%. This is almost double the overall average in Sydney, which is 4.46%.
In Melbourne, the suburbs paying a higher-than-average interest rate are Blackburn, Glen Waverly, South Morang, Mernda, Narre Warren and Cranbourne. According to the HashChing data reported by news.com.au, these suburbs are paying up to 7.04% on average, which is in stark contrast to the Melbourne average of 4.46%.
HashChing CEO Mandeep Sodhi told news.com.au the reason why these suburbs are paying higher interest rates is because of a higher percentage of self-employed borrowers.
“What we believe, in those postcodes there are a lot of people who are self-employed, and that is a trend which is common across all states,” Sodhi told news.com.au.
Banks have traditionally seen self-employed borrowers as higher risk due to their income being less stable than PAYG employees.
“It’s not a bad thing to be self-employed. If you are making your repayments on time, it is time for you to look for a better deal and a better bank.” Sodhi commented.