The number of Australians aged 65 years or older still holding a mortgage rising by more than a quarter in the past three years, new research has revealed.
According to data from ING
Direct, the number of over 65 year olds still holding a mortgage has risen by 28% over three years.
Of those in their retirement years that still have a mortgage, almost three quarters (74%) are still paying off an owner occupied mortgage while just over a quarter (26%) still hold an investor loan. The average debt they are holding is $158,000.
Direct head of third party distribution, Mark Woolnough, said this is not a surprising revelation.
“As property prices climb and people wait longer to get onto the property ladder, it’s not a surprise that people are holding their home loan debt later in life,” he said.
“However, proper planning is critical to make sure that this debt doesn’t cause stress in later years and people can enjoy the retirement they have worked hard for.”
According to ING
Direct’s Autumn Buyers Guide, the average capital city residential property has increased in value by 32% since June 2012, with growth of 7.6% in the past 12 months alone. The average age of a home buyer has also risen in recent years to 38.
“We talk about superannuation and property as the barbells of a person’s financial lifecycle – in most cases they are the two biggest investments that a person will ever make,” Woolnough said.
He said brokers are in a prime position to educate and guide consumers about superannuation.
“Research has shown us that people are very open to discussing broader financial needs when they are sourcing a mortgage, such as their superannuation, and brokers are in a great position to encourage and support their clients to consider and sort their super in light of this growing property debt trend.”
In 2015, ING
added the Living Super superannuation product to it Broker referral program.