Powered by MOMENTUM MEDIA
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.

Advertisement
Advertisement

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

 

Latest News

Another challenger bank has been granted a banking licence by the prudential regulator. ...

Almost half of prospective home buyers are unfamiliar with key mortgage terminology, according to new Westpac research. ...

Small businesses would be “unjustifiably disadvantaged” if limited recourse borrowing arrangements were to be abolished, the CEO of a c...

FROM THE WEB
podcast

LATEST PODCAST: The Third-Party Lending Report in summary

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?