Australian Home Loans, Their Prevalence, And How To Say Goodbye To Bad Term Agreements And Clauses
Of the 195 countries spread across six continents – it’s not sensical to include Antartica, as polar bears and penguins don’t really count as people – US News ranks Australia as the eighth-best in its Best Countries Overall ranking of 2016. Despite being ranked high in contributing to the world in charitable giving, having top-notch healthcare systems and overall healthiness as a country, and boasting many international publications, Australia is largely behind in one aspect of living – consumer debt.
Earlier this year, in June of 2017, the entirety of Australia was ranked as – not first, thank goodness (this sentiment’s loaded with sarcasm) – having the 2nd-highest [debt]:[gross domestic product ratio] in the world. The total amount of consumer debt per household in Australia is a whopping quarter of a million dollars – or $190,000 in United States Dollars – for each and every household in the land down under.
It’s also been calculated that of the average household’s income in Australian Dollars of $80,000, those households have a mean mean – you read that right – of $141,600 in total outstanding consumer debt. As such, it’s virtually impossible for Australians to pay back their debts without going absolutely bonkers. Just like most countries’ largest components of consumer debt, 56.3% of Aussies’ outstanding balances come in the form of Australian home loans.
With relatively low incomes compared to the cost of homes, they’re forced to take out Australian home loans. Owning houses outright, or at least having unfettered access to those that are secured by Australian home loans, is part of most people’s dreams in life.
As you can probably tell, even prior to looking at statistics, Australian home loans are quite expensive, with the average being $376,200 of obligations as of June 2017. First-time buyers, although being more conservative in seeking out Australian home loans, are still bogged down with signifiant levels of debt, totaling an average of $317,400 in that same month.
Seeing as Australian home loans are so darn expensive, it’s important for Aussie consumers to learn about strategies for shopping for Australian home loans. Fortunately for these hard-working, debt-addled citizens, here are several tips for keeping mortgage balances to a somewhat-respectable low.
Although it might seem overly simple, prospective homeowners should shop around multiple neighborhoods, with several real estate agents, and spend a collectively long period of time at financiers’ establishments in negotiating with their representatives. These three are effective means of securing affordable Australian home loans.
Down payments aren’t necessary, despite what most people think. Searching for a mortgage opportunity that allows minimal, sometimes even nonexistent down payments, is a potent way of keeping costs low.
For those that already have Australian home loans, consider refinancing. If you’ve boosted your credit score since you took out your first mortgage, it’s undoubtedly wise to refinance into a shorter-term mortgage.
Drop home insurance if at all possible. The vast majority of homes won’t experience expensive emergencies, making insurance just another burden on your already-high consumer debt payments.