Non-major UBank has released new research showing the extreme lengths Australians are going to in their lives as a result of unrealistic mortgage payments.
The survey asked Australians how comfortable they were with their current loan obligations and whether or not their mortgage was causing undue stress.
“The research uncovered some quite alarming results, with the key takeout being that Australians are working too hard to pay off mortgages they can only just afford and subsequently not living comfortably,” said UBank CEO Lee Hatton.
“One in four Australians admits they are financially stretched in relation to meeting their mortgages and as a result, they’re sacrificing their personal and social lives.”
Because mortgage holders were typically so financially stretched, the research found that:
- 56% skipped time with family in order to work more
- 54% missed a family holiday because of financial pressure
- 59% cut short a holiday due to loan payment considerations
“We also found that 50% of home owners are seeing repayments take a toll on their social life, declining at least two social outings a month in order to meet their mortgage repayments,” said Hatton.
“While it’s important to be smart with money, we encourage Australians to choose houses that are in reach financially so they can live fulfilling and happy lives without undue financial stress.”
Furthermore, the research found that 85% of Australian mortgage holders are living in a house which is too large with at least one unused room. Of these, 58% said they could live without the additional space.
“It can be nice to have the bigger house, but at what cost does this come at? Is it worth getting rid of the extra room and downsizing to get a smaller mortgage?” said Hatton.
“Our research also uncovered that for those who are financially stretched in relation to their mortgage, 80% wish they could spend more time in their home, indicating that they spend more time working to pay off the house, rather than spend quality time in it.”
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