Aussie home owners nearly four years ahead on their mortgages: APRA

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on January 10, 2022 Fact Checked
Aussie home owners nearly four years ahead on their mortgages: APRA

Australian households are storming ahead on their mortgage payments by almost four years thanks to a surge in savings during the pandemic.

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

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of July 3, 2022. View disclaimer.


Image by Sandy Millar via Unsplash

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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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