Most borrowers well ahead of repayments
The Reserve Bank of Australia said many borrowers are ahead on their home loan repayments yesterday. Around 15 per cent of borrowers are ahead by two years or more, at least at major banks.
Of those borrowers who are ahead on their mortgage around 45 per cent are estimated to have a buffer of up to six months, 15 per cent have a buffer of between six months and a year, and more than 40 per cent have a buffer greater than one year’s repayments.
More than half of owner-occupiers are estimated to be ahead on their mortgage repayments, while less than 40 per cent of investors (who have tax reasons for minimising payments) are ahead.
Source: Banking Day