Home loans are ‘only for the rich’

The leader of ANZ, a major banking institution, has issued a dire warning to prospective first-time home buyers as the cherished Australian dream of homeownership continues to move further out of reach.

Picture: NCA NewsWire/ David Crosling

In the past week, the Reserve Bank of Australia (RBA) implemented its 13th interest rate hike, bringing it to 4.35 percent in an effort to control inflation. This increase translates to an additional $15 in repayments for every $100,000 borrowed for individuals with a variable home loan.

In the midst of this challenging economic scenario, recent research by Finder has unveiled a concerning reality for Australian home buyers. They now require nearly double the average full-time salary to be in a position to purchase a home, with the financial strain intensifying following the latest cash rate hike by the national reserve bank.

Finder’s findings indicate that the minimum household income necessary to afford a mortgage for an average Australian house is $182,000, while those seeking ownership of units should have around $130,000. In contrast, the average full-time salary, as per ABS data, hovers around $96,000, compelling homeowners to delve deep into their finances to meet their mortgage obligations.

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