Australian consumers are becoming more comfortable with higher loan to value ratios and increased levels of debt, according to a survey of homebuyer confidence.
RFi research director Alan Shields, who prepared the index, said that average LVRs could begin to increase as homebuyers become more comfortable taking on more debt.
"What we're finding is that there is almost no correlation between indebtedness and stress. Australians appear slightly more indebted than they had been, yet stress is not going up. And if they're comfortable with their debt and they're not stressed, the likelihood is they're going to borrow more," he said.
The survey found that the number of respondents who were comfortable borrowing at LVRs above 80% has increased since last September. In spite of the higher LVRs, Shields said Australian homeowners seem to be having an easier time meeting their repayments.
"The proportion of people comfortable buying at higher LVRs is up, but the proportion of people both anticipating and experiencing mortgage stress has improved," he said.
A recent Dun & Bradstreet survey, however, suggested that more Australians are relying on credit due to low cash flow, indicating that 41% of households with children would have to turn to credit cards to meet living costs.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
east victoria park
Get help with your investment property
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 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 and appointment is free.
We value your privacy and treat all your information seriously - you can check out