Aussies paying down mortgages faster

by Julia Corderoy28 Jul 2014
Australians are paying off their debts faster, according to a NAB analysis. The analysis shows that 85% of its home loan accounts are now ahead on mortgage repayments, and there has been a 6% increase in the number of credit card accounts paid in full.

Repayments on home loans are ahead by an average of 13 months, the analysis reveals. A spokesperson for NAB says customers are taking advantage of greater access thanks to technology, and the lower interest rates.

“Customers are taking advantage of the low rate environment, but also the greater access that technology provides them to keep on top of all their debts with more than a million logons to internet banking every day – 56 per cent of which are through mobile,” NAB’s executive general manager of lending and deposits Antony Cahill said.

Owner-occupiers are leading the pack, with the analysis revealing that 70% of the home loan accounts that are ahead on mortgage repayments are owner-occupiers. This is followed by investors (16%) and first home buyers (14%). The majority are aged between 40-49 years (31%), while 30-39 years and 50-59 years make up 25% each.

Victoria is the top performing state, with 32% of the home loan accounts that are ahead on repayments from Victoria. New South Wales is just behind with 31%. While South Australia and Western Australia make up only 7% and 9%, respectively.