Australians are keeping well ahead of their mortgage repayments, utilising consistently low interest rates to pay loans off faster.
Results from Citibank’s 2014 financial survey show a quarter of the population are mortgage free home owners, up 9% from 2007.
News Ltd spoke to Citibank’s head of banking solutions and wealth management, Dierdre Wroth, who noted that Australians are remaining financially astute since the global financial crisis, focussing on saving up or lowering debt.
Banks are still offering low interest rates below five percent, which are predicted to hold throughout the new year.
News Ltd reports the “long stretch of low interest rates since the global financial crisis is expected to continue well into 2015”.
The study shows more are choosing to take up home loans as the number of people renting has fallen from 36 per cent in 2007 to 24 per cent last year
Australian Finance Group figures show that on average, new mortgages in December amounted to $444,000.
“In NSW the average size was the highest at $544,000, followed by Victoria ($439,000), WA ($428,000), NT ($375,000), Qld ($374,000) and SA ($349,000),” News Ltd reported.
