subscribe to our newsletter
Home ownership a million-dollar dream

Home ownership a million-dollar dream

The Australian dream of home ownership carries a $1 million price tag for many, according to research by comparison website finder.com.au.

The research found that Australians with a mortgage of at least $489,300 will end up paying $1 million over the life of a 30-year loan using the average variable interest rate of approximately 5.5 per cent.

Furthermore, if the mortgage was 80 per cent of the property’s value, any property priced from $611,625 will end up costing the borrower $1 million.

Michelle Hutchison, spokesperson for finder.com.au, said borrowers face the danger of having to spend a lot more than necessary.

“When borrowers look at how much they can afford to repay for a home loan, they might not look down the track to how much they end up spending,” Ms Hutchison said.

“While it’s likely that your home will increase in value over a 30-year loan term, it might not compensate the cost of a home loan, as the money you end up spending can be greatly increased if you have a small deposit and don’t shop around for a good value deal.”

Home ownership a million-dollar dream
mortgagebusiness logo

Latest News

Two lenders have announced rate changes on their home loan offerings, with rises of up to 40 basis points. ...

The major bank has announced the appointment of a new group treasurer to replace Rick Moscati, who has been embroiled in an ongoing investig...

The corporate regulator has issued guidance in relation to its oversight of a newly formed external dispute resolutions body, the Australian...

Promoted Stories

podcast

LATEST PODCAST: How the market has changed in the last 25 years, royal commission hearings, broker advocacy

Do you expect access to credit to get harder this year?