Australia has a very comfortable level of mortgage debt, according to new data from the Australian Bureau of Statistics and Australia’s banking regulator, APRA.
The total value of Australia’s housing was $7.14 trillion at the end of June, while the total value of outstanding loans secured by residential property in Australia was $2.01 trillion.
That means the nation’s collective loan-to-valuation ratio (LVR) was 29.4%.
As you can see in the chart above, the vast majority of outstanding home loans are below 81% LVR. The breakdown is:
- Under 60% LVR = 32% of outstanding mortgages
- 60% LVR to under 80% LVR = 47% of outstanding mortgages
- 80% LVR to under 90% LVR = 16% of outstanding mortgages
- 90% LVR to under 95% LVR = 4% of outstanding mortgages
- 95% LVR and above = 1% of outstanding mortgages
If you apply for a home loan with a deposit of at least 20%, you can save a substantial amount of money:
- You won’t have to pay lender’s mortgage insurance (LMI)
- You can access lower interest rates and more competitive offers
Lenders are competing hard for low-LVR customers – get in touch to see if we can get a few competing for your business.