Next generation will not be able to afford a mortgage: Survey

By |
Almost three in five Australians believe the next generation will never own their own home, the results of a new survey have shown.

According to research from Ipsos and MLC, 58% of those surveyed said the next generation will be forced to rent all their lives and never own their own home. Much of this anxiety has been fuelled by the increase in house prices over the last five years. 

Data from CoreLogic RP Data shows house prices across Australia’s capital cities have increased by a cumulative 49.2% post GFC, since January 2009. 

Further, almost 1 in 5 (17%) in the Ipsos and MLC survey indicated that will be relying on family inheritance to pay off their mortgage or ensure their financial security. 

This was higher among those who believed their parents to be a higher class than them. More than half (55%) of those who believed their parents were upper class said they would have to rely on their parents, while one in five (20%) of those who believed their parents were upper middle class expect to rely on their inheritance. 

Almost a quarter (24%) of those respondents who went to a private school said they will need to rely on family money to pay off their mortgage. 

This comes as no surprise given more than three quarters (76%) of the 2040 people surveyed say that their mortgage has a big impact on their lifestyle, regardless of their wealth.

The results of the MLC survey come just days after similar findings from lender's mortgage insurance provider Genworth, which showed potential buyers in Australia believe they are facing an increasinlgy uphill battle to come up with deposits for property purchases

Genworth chief commercial officer Bridget Sakr said that belief shows that current low interest rates aren't making entering the property market as easy as some would believe. 

“The difficultness in saving for a deposit has increased by 20% since September. I think we need to keep that in mind in the home ownership issues, it’s not the affordability when it comes to interest rates, but the actual accessibility," Sakr said. 

“Even though we’ve had those out of cycle rate increases, the interest rates in the first home buyer market are still pretty low, but it’s actually house prices that are making it quite expensive," she said. 

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : reservoir , millner , artarmon , kariong , tiwi

go back
  • Wendy says on 06/04/2016 03:21:18 PM

    I can only agree. I myself do not own a home, and I am now in my 50's. The great Australian dream is now the great Australian nightmare! With the cost of living soaring be it food, electricity, fuel etc. with job losses all around, low wages not in keeping up with inflation, how can anyone own anything, unless you come from a wealthy background.
    Australia is being sold off to overseas companies at a fast rate, do we the people have a say in this?
    I really feel for our children and future generations.
    It is not rocket science, unless there are changes implemented dramatically, there is not going to be a future for our children to look forward to!

  • Bob says on 06/04/2016 03:28:29 PM

    Shocking! Came across a similar article in the Daily Mirror saying 90% of first time homeowners can't afford to buy!!!

    Granted it was back in 1988 when the Sydney median was $85k ;)

    Check it out-

  • Bart says on 06/04/2016 04:57:01 PM

    People will always be able to buy property, over the years that has never changed. What does change is the mind set of reaching the goal. When I brought my first property it was $14,990 and I had to borrow the $1000.00 to pay the solicitor.
    My mortgage was $220.00 month and I felt that would be very difficult to make?
    So what do you do? Cut out unneccessary expenditure, take another job and plan to do a tough first 5 years. You might not be able to buy in your suburb choice 1st or 2nd time round, nut you will get there in the end. Its just a mindset, just do it!

View 3 more comment(s)

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here