Housing debt surpasses pre – GFC record

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.

Author: Dorian Traill

Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.

Leave a Reply

Your email address will not be published. Required fields are marked *