The table below shows that the majority (58 per cent) of homebuyers are paying less than 20 per cent of their monthly income on home loan repayments and that almost three-quarters are paying less than 25 per cent of their income. However, a significant number (180 000 or 11.5 per cent) of homebuyers have loan repayments equal to 35 per cent or more of their income, ie are under stress as defined.(3) Of concern is the fact that there are 88 000 homebuyers paying at least 45 per cent of their income on loan repayments, the majority (two-thirds) of whom are low income households earning less than $36 000 p.a.(4)
That is one hell of a stess for the world's greatest homeowning democracy, especially with interest rates trending up.