Older Aussies still hold mortgage debt
Australians are taking mortgage debt into their retirement years at an increasing rate.
A new study by ING DIRECT has found the proportion of Australians aged 65 years and older who still hold a mortgage has risen by 28% over the past three years. Of those who still have a mortgage, 26% have an investment loan while 74% are owner occupiers.
"As property prices climb and people wait longer to get onto the property ladder, it's not a surprise that people are holding their home loan debt later in life. However, proper planning is critical to make sure that this debt doesn't cause stress in later years and people can enjoy the retirement they have worked hard for,” ING DIRECT head of third party distribution Mark Woolnough said.
ING DIRECT’s Autumn Buyers Guide shows that since June 2012, the average capital city residential property has increased in value by 32%, growing by 7.6% over the past 12 months alone. The average age of home buyers has also risen to 38.
"We talk about superannuation and property as the barbells of a person's financial lifecycle – in most cases they are the two biggest investments that a person will ever make,” Woolnough said.
Woolnough urged borrowers to discuss superannuation needs with their mortgage broker “in light of this growing property debt trend”.