Aussie Homeowners Mortgage: What a Study Reveals

A new study gives us a look at the Aussie homeowners’ mortgage situation. It shows a surprise. Many homeowners had to pay a lot more each month. Some paid $1000 more. But they did not cut back on spending.

The study looked at bank data. It found homeowners used their savings. They used this money to pay the extra costs. They saved this money during the COVID-19 pandemic. The money was in special accounts.

This goes against old ideas. Many thought higher interest rates would make people spend less. But the study showed this was not true.

What the Study Found About Aussie Homeowners’ Mortgage

The research looked at many people. It found that homeowners with a variable-rate loan paid more. But their spending stayed the same. They used their savings to cover the difference.

Their mortgages were “liquid.” This means it was easy to get money out of their savings. They could pay their loans easily. To learn more, see our article on Home Loan Health Checks.

What This Means for the Future

The study has a warning. The savings from the pandemic are now getting lower. When these savings are gone, new rate changes may have a bigger impact. People may then have to spend less money.

The study found that how a mortgage is set up is very important. Interest rates can change fast. But a homeowner’s spending does not have to change fast.

The study was done by a group of universities. It was shared in a paper. The research was also supported by the e61 Institute and the Reserve Bank of Australia.

Need Help?

We are here to help you. We can look at your home loan. This can help you find a smarter way to manage your mortgage.

Contact EZ MORTGAGE BROKER today for a free chat.

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