Despite the high levels of uncertainty in the market place, Australian’s are incredibly comfortable with high levels of debt, new research has revealed.
According to Genworth’s recent International Mortgage Trends Report, Australian’s are happier taking on high levels of debt than their international peers.
Alan Shields, director of RFi research house, who conducted the research on behalf of Genworth, said most home buyers were comfortable taking on large levels of debt, with many borrowing in excess of 80 per cent of their property’s value.
“In regards to buying their home, the comfort levels with debt were high,” Mr Shield said.
“By international comparisons they were the largest proportion of any country with 39 per cent of Australian borrower’s comfortable borrowing well over 80 per cent LVR.”
Despite their appetite for high levels of debt, the report also found Australian home buyers are managing their debt well.
Of the respondents, close to half (45 per cent) said they were paying down more on their mortgage than necessary, compared to the international average of 26 per cent.