Overall housing debt to income ratio has reached a record breaking 137.1%, 5 percentage points higher than what was recorded prior to the Global Financial Crisis, according to the Reserve Bank of Australia.
The shocking news was revealed in a recent report by the RBA, showing a drastic growth in mortgages as opposed to incomes. Owner occupied debt to income ratio has also shattered the pre – GFC record, currently at 90.9% from a then high of 86.7%. Mortgages have a critical impact over the economy as home loans cover around $200 billion in annual borrowings. Property remains in demand as recent national auctions finished at a decent 70% clearance rate.
Read more about this on the Financial Review website.