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Most home owners well-placed to pay off their loan

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.

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