Find Us

Level 21/ 133 Castlereagh Street, Sydney, NSW 2000

Call Us

02 8076 6026

Office Hours

Mon–Fri: 9am–5pm

Information You won’t get from Unlicensed Accountants #83

Retiring Australians & Mortgage Debt

The number of Australian retiring with mortgage debt is increasing rapidly. People are working longer, but are also dipping into their superannuation balances to clear these larger mortgage debts as they retire. The sharpest rise has been among those approaching retirement. In 1990, 15% of home owners aged 55-64 were still carrying mortgage debt. That figure is now 47%.

There two main reasons for this are:

  1. Property prices have risen rapidly over this period. This has resulted in a doubling of the debt to income ratio across all age categories.
  2. Australians are far more likely to dip into their home equity to pay for various wants and needs than they have in the past.

Between 2000 & 2010 around 500,000 Australians were forced to sell their homes due to mortgage distress.

“You make all of your money in ‘Bear Markets’, you just don’t realise it at the time” – Shelby Davis.

Related News

Planning for retirement

Planning for retirement

Retirement tends to roll around a lot sooner than we expect. Laying plans from an early stage will ensure…

Investment Solutions Magazine – Winter 2019

Investment Solutions Magazine – Winter 2019

In this edition of Insights and Investment Solutions magazine, learn about the latest market update on local and international…

Easton Wealth 2020 Awards

Easton Wealth 2020 Awards

With or without the Annual Conference the Easton Wealth 2020 Awards were to continue! In fact the team at…