Thousands of homeowners no longer in mortgage stress

According to the Mortgage and Finance Association of Australia, 76 per cent of Australians are repaying home loans much easier – up more than 10 per cent since April 2008.

Bruce Watt of Australian Residential Property Planners states that the Housing Industry Association’s economic modelling supports these figures, confirming that 135,000 mortgaged households have seen their stress levels reduce since December 2008. 

Watt says, “Due to the Reserve Bank’s decision to cut a further one per cent off the variable home loan rate we now have the lowest interest rate since the early sixties. This, combined with a tightening in the housing construction sector, has put further strain on the private rental market where supply is not keeping up with demand.”

The increased growth in rental yield, low vacancy rates and the lowest interest rates for years is what Watt believes is stimulating investment in the residential property market.

“All market indicators are pointing to this being a good time to buy an investment property,” he says.