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Australia’s mortgage repayment burden is falling, according to new data from the Reserve Bank of Australia.
According to household debt data recently released by RBA, the ratio of household debt to disposable income fell from 182.6% in the June quarter to 179.9% in the September quarter.
Within that number, the ratio of mortgage debt to household disposable income dropped from 139.5% in the June quarter to 138% in the September quarter. The ratio of household interest payments to household disposable income fell to 6.3%. That’s the lowest recorded level since September 1999 and less than half the peak level of 13.3% recorded in December 2008, according to a MacroBusiness report.
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The ratio of mortgage interest payments to household disposable income fell to 5.2%, the lowest level since June 2002 and less than half the peak of 10.6%, also recorded in December 2008, according to MacroBusiness.
Separate data from the Bank for International Settlements showed that household debt repayments, which include both principal and interest, dropped to 14.2% in the June quarter, the lowest level since September 2004.
The drop in debt repayment burden has been driven by record-low mortgage rates, MacroBusiness said.