Around one in four prospective homebuyers are putting off big life decisions, new research shows.
A recent survey commissioned by Mortgage Choice has revealed that 76% of mortgage holders and 78% of prospective buyers have postponed a big life decision due to the current economic climate.
Australians aged 55 years and older are currently inclined to delay their retirement, while millennials are more likely to delay starting or expanding their family.
The most common life decisions postponed as result of rising interest rates include:
– 50% of mortgage holders and 40% of prospective property buyers say they have postponed saving money;
– 31% of mortgage holders and 21% of prospective buyers have postponed buying a car;
– 42% of prospective homebuyers and 28% of mortgage holders have postponed buying a new home or investment property;
– 11% of prospective buyers have postponed starting a family;
– 19% of those aged 55+ have postponed their retirement plans.
Mortgage Choice CEO Anthony Waldron remarked that the findings are concerning, but not surprising.
“We know that Australians’ borrowing power has reduced by as much as 30% since the RBA first started raising the cash rate in May 2022”, he said.
“Every day our brokers are meeting with worried borrowers – in particular those facing the end of their fixed term rates and potential increases of more than $1,000 per month in their mortgage repayments.”
Waldron suggests that borrowers talk with their mortgage broker when planning for a next life stage, or even just to see how your home loan can work around these changes in the economy.
“As the cost of living rises, it’s easy to feel like you don’t have options, but a broker can model different loan scenarios so you can make informed choices,” he concluded.
