First home buyer mortgage pressure on rise

By webmaster

First home buyers in Brisbane and Melbourne are facing mortgage pressures on par with Sydneysiders, new research has revealed.

Despite Sydney being widely considered the nation’s most unaffordable city, research by the National Centre for Social and Economic Modelling (NATSEM) at the University of Canberra has found, mortgage pressures in Brisbane and Melbourne have increased significantly over the past decade.

According to NATSEM, more than half of first home buyer households in all three cities pay more than 30 per cent of their disposable income on housing costs.

Over the past decade mortgage pressures have remained high but stable in Sydney at 56 per cent.

In the same period, mortgage pressures have increased dramatically in Brisbane and Melbourne, from 43 to 58 per cent and 36 to 53 per cent respectively.

“The higher pressure on first home buyers is driven by disposable incomes growing by just 64 per cent compared to house prices growing by 132 per cent over the past decade,” principal researcher Ben Phillips said.

Mr Phillips said there were no signs of the situation easing.

“The removal of the first home buyer’s grant bonuses through 2009 and the prospect of higher interest rates offer a bleak outlook for potential first home buyers and recent first home buyers, many of whom either have a large mortgage or continue to battle a tight rental market.”

First home buyer mortgage pressure on rise
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%