More Australians are reaching retirement with a mortgage as first home buyers get older
ABCLinda Thoresen is dealing with a precarious future. Finance analyst and founder of Digital Finance Analytics, Martin North, said more people were remaining in the workforce for longer because of "a significantly higher mortgage liability than they expected". Mr North said the Reserve Bank of Australia should be looking into this issue because high house prices forced more first home buyers to rely on their parents for financial help to string together a housing deposit — the so-called 'bank of mum and dad'. "The other factor that we found in our surveys was that less people now have the capacity in their superannuation to pay off their mortgage," Mr North said. She said it data was a clear sign that if house prices continued climbing, that age could get even older, and with the average home loan lasting 30 years, many may find themselves reaching retirement age still paying it back.
History of this topic
Has the great Australian dream of affordable home ownership turned to a nightmare?
ABCFirst-home buyers could be spending 40 per cent of their incomes on mortgages if interest rates rise twice more
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