Australians more comfortable than ever with mortgages

by Adam Smith03 Jan 2014
Australians are more comfortable with their mortgage payments than ever, and nearly half are paying them down ahead of time.

The ING Direct Financial Wellbeing Index has found the proportion of borrowers uncomfortable with their mortgage is 5%, the lowest since the bank began tracking the statistic. And those with a mortgage are paying it down quicker, with 49% saying they were paying ahead on their home loan.

The Index found that households remained in sound financial shape heading into the final quarter of the year, with the index steady at 110.8, a marginal decline from 111.5 in Q3. Twenty-one per cent of households felt their biggest achievement in 2013 was staying on top of their debt.

But that doesn't mean households don't show concern for the year ahead. The key concerns respondents showed for 2014 were not being able to get ahead financially (29%), the loss of a job (19%), that the economy would not recover or prosper (19%) and that interest rates would rise (13%).