Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

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.

Advertisement
Advertisement

“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

Discover some of the top news stories impacting the mortgages space in this weekly wrap-up. ...

The financial watchdogs have remained wary of risks to the housing market as cash rate rises flow through to mortgage customers. ...

Australia’s household wealth has reached $14.9 trillion largely due to house price momentum, yet quarterly growth has continued its recent...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.