Loans Being Paid Down Faster
Australian mortgage holders are paying down their loans at the fastest rate since the peak of the global financial crisis. Reports suggest that homeowners are putting in almost double the minimum monthly repayment on loans. One of the reasons is that Australians are taking a less exuberant approach to borrowing.
Figures released by the RBA show many homeowners are choosing to repay their mortgages more quickly than required, with nearly 50 per cent of owner-occupiers with mortgages ahead of schedule on their repayments. In many cases, the figures represent one-off payments from things such as salary bonuses or the selling of shares. From the beginning of 2008 to the end of last year, households took a total of $50 billion out of equity markets, while over the same time, holdings of deposits increased by about $120 billion. The RBA said borrowers were well placed to meet their debt obligations.