Homeowners have taken to making a dash on their loans by utilising pandemic savings, with a record $50 billion funnelled into offset accounts over the past two years according to figures published in The Australian.
New data from the Australian Prudential Regulation Authority (APRA) detailed in The Australian noted average households were 45 months ahead of principal and interest mortgage payments and 52 months ahead of interest only mortgage repayments.
This comes following the household saving ratio recording a 46-year high peak of 23.6% in June quarter 2020 and a rate of 19.8% in the latest September 2021 quarter.
NAB Executive of Home Ownership Andy Kerr said Australians love offset accounts and are more active users than pretty much anywhere else in the world.
"The use of offsets has surged, with total offset account values up more than 10% through the pandemic," Mr Kerr told Savings.com.au.
“The main reason for these trends is the record low rates that have been on offer, while there has also been an element of forced saving as the pandemic has postponed many major milestones, such as weddings and overseas holidays."
Minister for Housing and Assistant Treasurer Michael Sukkar said the Australian economy is continuing its recovery from the Covid-19 pandemic, and these figures show that Australians are well placed to pay down and get ahead on their home loans.
"On top of strong jobs growth and unemployment at 4.6%, household savings throughout the pandemic are ensuring people can get ahead and stay ahead of their mortgage," Minister Sukkar told Savings.com.au.
"Housing programs, from HomeBuilder to the Home Guarantee Schemes, have seen more Australians achieve the goal of owning their own home.
"The economic support provided to households during the pandemic has backed in Australian homeowners and we remain committed to supporting more people buying a home of their own."
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.69% p.a. | 6.16% p.a. | $2,319 | Principal & Interest | Fixed | $0 | $530 | 90% | Featured |
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5.99% p.a. | 5.90% p.a. | $2,396 | Principal & Interest | Variable | $0 | $0 | 80% | Featured Apply in minutes |
| Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $2,421 | Principal & Interest | Variable | $0 | $250 | 60% | Featured |
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Image by Sandy Millar via Unsplash
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