Mortgage holders in strong position to make additional repayments

by AB28 May 2013

Nearly 85% of homeowners feel positive about their current financial situation, describing it as either ‘solid’ (23%) or ‘reasonable’ (61%), according to the 2013 Homeowner Intentions Survey conducted by Mortgage Choice.

The franchise says the findings are a welcome indication that most homeowners are feeling optimistic about their ability to manage their finances, regardless of the fact that the current low interest rate environment has translated into significantly lower mortgage repayments for most borrowers.

The results of the survey show that, while the majority of homeowners feel positive about their financial position, their most pressing financial concern at present is ‘repaying my mortgage’, at 37% of respondents. This was followed by ‘cost of living’ (25%) and ‘repaying credit card debt’ (16%) to make up the top three responses.

Mortgage Choice head of corporate affairs, Belinda Williamson, says the fact that over a third of homeowners see their mortgage repayments at the top of their financial priority list is an encouraging sign.

“Because let’s face it, for many Australians, taking out a mortgage is often the biggest financial decision they will make, so it is sensible to take that commitment seriously.”

The survey also found that the majority of homeowners (77%) were making additional repayments towards their mortgage.

“It was interesting to see that of those people who were making additional mortgage repayments, over 50% said they had not made any lifestyle sacrifices to do so,” notes Williamson. “When asked whether they would continue to make additional repayments if interest rates go up, nearly 45% said they would as they had already factored in higher repayments.”