mortgage repayments

How much of your income you really need to pay off a mortgage in Australia – and where buying a home is getting a LOT easier because of coronavirus

PHOTO: Perth has cemented its place as the cheapest state capital city to buy a home with repayments taking up just 15 per cent of income. Pictured is a house on the market at Innaloo

Housing affordability is at the best level in a decade as a result of the coronavirus recession.

An Australian dual-income couple earning $1,305 a week after tax needed to dedicate 23 per cent of their monthly income to pay off a mortgage in September, down from 25.1 per cent a year earlier, an analysis by ratings agency Moody’s showed.

This was also well below the decade-average level of 26.4 per cent, covering the aftermath of the Global Financial Crisis to now.

Housing affordability (Adelaide house pictured) is at the best level in a decade as a result of the coronavirus recession. In September, an Australian dual-income couple earning $1,305 a week after tax needed to dedicate 23 per cent of their monthly income to pay off a mortgage, down from 25.1 per cent a year earlier, an analysis by ratings agency Moody's showed

Housing affordability (Adelaide house pictured) is at the best level in a decade as a result of the coronavirus recession. In September, an Australian dual-income couple earning $1,305 a week after tax needed to dedicate 23 per cent of their monthly income to pay off a mortgage, down from 25.1 per cent a year earlier, an analysis by ratings agency Moody’s showed

How much pay a couple needs to service a loan

SYDNEY: 29.9 per cent, down from 30.9 per cent a year earlier

MELBOURNE: 24.6 per cent, down from 27 per cent a year earlier

BRISBANE: 18.7 per cent, down from 21 per cent a year earlier

ADELAIDE: 19 per cent, down from 19.8 per cent a year earlier

PERTH: 15 per cent, down from 17.4 per cent a year earlier

Source: Moody’s Investors Service data for September 2020 on how much of their pay two-income couples need to spend to service a mortgage. Moody’s didn’t have data for Canberra, Hobart or Darwin

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