The first edition of the Mortgage Choice Home Loan Report revealed that nearly four in five borrowers are making sacrifices to keep up with their home loan repayments.
According to the Mortgage Choice report, 78% of borrowers have cut back on eating out, entertainment, and holidays to manage their mortgage payments.
“Consumers are telling us loud and clear that they’re still feeling the pinch when it comes to keeping up with home loan repayments," said Mortgage Choice CEO Anthony Waldron (pictured above).
The property market is set to be busy, with 57% of prospective buyers delaying their decision to buy until 2024.
The report also showed a 17.5% increase in the value of purchase submissions compared to the previous March quarter.
“Our brokers are reporting a sense of cautious optimism from customers motivated to act on their property plans," Waldron said.
The national average loan size rose to $583,416, reflecting a -9% increase year on year. PropTrack Home Price Report revealed national home prices are 7.1% above March 2023 levels, with the median home value in capital cities at $832,000.
“In the first quarter of 2024, we saw submission values and the average loan size increase year on year,” Waldron said.
Refinancing activity has dropped from 40% of borrowings in the March 2023 quarter to 26% in the March quarter of 2024. This reduction is attributed to stabilised interest rates and changes in lender retention policies.
“Our brokers around the country are telling us that it has become difficult for some customers to refinance because many don’t meet the serviceability requirements for a new home loan,” Waldron said. “Gone are the days of fixed rates under 2% – borrowers would now struggle to lock in a fixed-rate under 6% per annum.”
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