Job loss and bills weigh heavy on borrowers' minds

by Caroline Dann25 Sep 2012

New survey results show the vast majority of new first home owners fear job loss and rising utility bills over all other concerns.

Mortgage Choice conducted the annual survey of 900 first home owners, who purchased within the last two years.
It found 32% feared increasing utility bills would impact their ability to make mortgage repayments.
15% of respondents were concerned over job security, which was an 8% increase on last year’s results. Mortgage Choice said general economic slowdown could be contributing to the sharp loss in consumer confidence.
Interestingly, concerns over interest rate fluctuations decreased significantly from 2011, from 47% of respondents last year to just 13% in 2012.
Mortgage Choice also found owners had saved for longer to purchase their house, hinting at a shift in borrower sentiment.
“This trend is likely to be a result of a number of factors, most notably Australians’ growing penchant to save and buyers’ reluctance to jump into the market quickly when property prices were still falling and further rate cuts were on the cards,” said a spokesperson.