Mortgages - Banks Confident

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Aussie Real Estate Podcast 10 min 3 speakers 8 chapters transcribed 2 months ago
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What is the main topic discussed in this episode?

Craig (Host) 0:02
it's the real estate podcast brought to you by ray white the largest real estate and property group in australasia and welcome to another episode of the real estate podcast available on iheart radio and also spotify and apple podcasts or wherever you get your podcast from

Why are Australia’s biggest lenders claiming mortgage borrowers are well-positioned for rate rises?

Craig (Host) 0:20
Tuesday the 17th of May has arrived for 2022 and there's a lot of talk about just how dicey things could get for mortgage borrowers with the RBA activity for the rest of this year. But Australia's biggest lenders are feeling pretty good and confident in just how most borrowers are going to be able to handle these rises. The reason the banks say that is that households have built up an impressive additional $240 billion in savings over the last two years.

How much extra savings have Australian households built up during the pandemic?

Craig (Host) 0:56
And when you couple the savings with the average owner-occupier mortgage being more than two years ahead in repayments and loan arrears, they say that borrowers are in a very good position to be able to weather the storm that is brewing. So at the weekend, I asked some homeowner friends of mine if they were two years ahead of their mortgage, to which they replied, hell no.

Are typical homeowners really two years ahead on mortgage repayments?

Craig (Host) 1:24
So I asked if they knew anyone who was two years ahead in their mortgage. Nope was the answer, and they cited that the cost of living was a major consideration why they were not two years ahead. Now, I'm sure that there are people out there, the bank knows who they are, and perhaps you know who they are. There's a lot of you, but that is pretty impressive, being two years ahead in your mortgage repayments.
ANZ Home Loans Station Announcer 1:52
It's the main centre forecast with propertybuyer.com.au.
Craig (Host) 1:57
And let's have a look at weather around Australia. First, we go to Sydney. A fine sunny day is in the forecast and a high of 21 degrees. Melbourne, it should be mainly dry with cloudy bits and 15 degrees. Good morning if you're in Brisbane. Expect a few showers today, a high of 25. And in Perth, expecting a sunny sunshine day with 24 degrees as your high. Well, Scott Morrison was questioned last night on the ABC by Lee Sales just five days out from the federal election. He was grilled over the Coalition's new super home buyer scheme after critics suggested that the plan to alleviate stress on first home buyers would in fact drive up house prices. The Liberal Party's move to allow home buyers to dip into their superannuation to pull together a deposit
Craig (Host) 2:51
They can now take out as much as 40% of their retirement investment to purchase their first home. Anne Morrison went on to say last night the key thing that impacts house prices is supply of housing and promoted the idea of more Aussies owning homes to invest in their future. Leigh Sales responded by saying what's the point of a policy that makes already insane housing prices even worse?

What did Scott Morrison say about allowing super withdrawals for first home deposits?

Craig (Host) 3:18
Well, you get to say what you think about all of this. Coming up on Saturday, you can cast your vote.
ANZ Home Loans Station Announcer 3:24
Enjoy your morning coffee. Wake up every morning to the Real Estate Podcast.
Craig (Host) 3:30
And yesterday was an interesting day. For some reason, the Sunday Weekly Review decided to delete itself all by itself, which was a mystery to us.

Could tapping superannuation to buy homes push up house prices?

Craig (Host) 3:41
And yes, thank you for your emails wondering where it was. So What we've done is we have blended it back into the Tuesday podcast this morning, and that is coming up in just a moment. And tomorrow we are going to check out a $2 million new suburb somewhere around Australia. It hit the mark a few days ago, which is bucking the downward trend and a very nice result for the vendors. And what may surprise you is the number of active bidders to achieve that $2 million price point.
ANZ Home Loans Station Announcer 4:15
across every state, city and town of Australia. The Real Estate Podcast.
Craig (Host) 4:20
So Angus, first home buyers saving for that all-important 20%. You recently looked into the length of time that it takes to save by region. So can we just break that down for our listeners?
Yeah, absolutely. So, you know, if you're looking to buy in Sydney, saving a deposit is seven years and the stamp duty adds another 1.4 years on top of that. In Melbourne, you're looking at six years and another 1.6 years on top of that.

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