Despite the mortgage stress that affects some Australian homeowners, the vast majority of borrowers experiencing it say they are not actually behind on repayments, latest data reveals.
25 per cent of borrowers feel mortgage-related stress – up from 21 per cent in March this year – according to Genworth chief executive officer Ellie Cromerford.
However, the Genworth Homebuyer Confidence Index (HCI) released yesterday (September 21) shows that 85 per cent of these people were still able to meet the requirements of their home loan.
In a further sign that many borrowers are finding ways to meet or exceed their minimum repayments, 41 per cent reported overpaying their mortgage within the past 12 months.
Cromerford asserts: “Despite 40 per cent of recent first home buyers putting more than half their monthly income towards servicing debt, we found just 15 per cent expect to have difficulties paying their mortgage in the year ahead and, in fact, 58 per cent project they will easily meet repayments.”
The survey shows that mortgage stress is related to a number of factors, with 72 per cent of respondents citing cost of living as their number one concern. Rising interest rates (50 per cent) and existing debt obligations (33 per cent) are the next two major worries of homeowners.
Mortgage advice from an experienced broker can potentially help property owners find ways to alleviate stress from their home loan repayments.