Big banks putting first homebuyers at default risk
14/04/09 16:48
Major banks are allowing first homebuyers to sign up for mortgages so big they are left paying more than half their net monthly income on loan repayments.
A survey carried out by The Weekend Australian found that the top four banks will lend up to $465,000 to a first time buyer earning a salary of $70,000 a year.
A survey carried out by The Weekend Australian found that the top four banks will lend up to $465,000 to a first time buyer earning a salary of $70,000 a year.
Taking Westpac's current variable mortgage rate of 5.64%, a loan of $465,000 taken over a 30 year term would leave a borrower making monthly repayments of $2,731.
A borrower earning a salary of $70,000 would take home approximately $4,583 a month in after-tax income, leaving a little over $1,850 (or just 39% of net income) - once the mortgage is repaid - for other expenses and living costs.
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A borrower earning a salary of $70,000 would take home approximately $4,583 a month in after-tax income, leaving a little over $1,850 (or just 39% of net income) - once the mortgage is repaid - for other expenses and living costs.
Full Story