Size of first homebuyer loans increases
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BN
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23/04/2010 12:00:00 AM
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Increased property prices have resulted in a boost to the size of loans taken out by first homebuyers.
A JPMorgan/Fujitsu report on the mortgage market shows that first homebuyers borrow an average of $280,000, about the same as established borrowers.
If interest rates were to rise to pre-GFC levels, first homeowners would be committing about 50% of their after-tax income to mortgage repayments, the report said.
“A small proportion of homeowners would fall off their perch because they'll be so severely stressed, and it will be among young families and first homebuyers,” said Fujitsu Consulting managing director
Martin North.
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