First-time homebuyers in Melbourne and Brisbane are now facing mortgage pressures similar with those in Sydney, according to new research.
A study conducted by the National Centre for Social and Economic Modelling (NATSEM) at the University of Canberra showed that more than 50 percent of first-time homebuyers in the three major cities are now paying more than 30 percent of their total disposable income on their mortgage debt.
Mortgage pressure remained stable in Sydney over the past decade, with 56 percent of people surpassing the 30 percent watershed. However, the figure has surged remarkably in Melbourne to 53 percent from 36 percent ten years ago and 58 percent in Brisbane, up from 43 percent.
“The higher pressure on first home buyers is driven by disposable incomes growing by just 64 per cent compared to house prices growing by 132 per cent over the past decade,” said Ben Phillips, the principal researcher.
Australians struggling with rising mortgage repayments could compare mortgages in search of better deals. According to NATSEM, one in every two first-time homebuyers in Australia now spend over 30 percent of disposable income on housing.