Census Update - Cost Of Servicing A Mortgage Decline

CoreLogic Perceptions of Housing Affordability report, reported that the toughest barrier to entry in the housing market is the deposit hurdle, while mortgage servicing costs have declined with interest rates. The 2016 Census data suggests that since 2011, the typical household mortgage repayment across the capital cities was either unchanged, or fell (with the exception of Darwin).

The 2011 Census was taken average standard variable rate was 7.8%. By the 2016 census it had fallen to 5.25%. Thus lower interest rates likely reduced the cost of outstanding mortgages through refinancing opportunities, while new home owners also benefited from lower interest rates, despite those same low interest rates encouraging rapid price increases in several of the capital cities.

Also pleasing to note that Migration Remains the Key Driver of Population Growth - Corelogic report that the latest demographic data from the Australian Bureau of Statistics (ABS) shows a rapid rate of population growth with migration the key driver.

The December 2016 quarter demographic data shows that at the end of 2016 the national population was estimated to be 24.4 million persons which had increased by 1.6% over the year. The 1.6% annual increase in the national population was the largest since the 12 months to June 2014, while in raw numbers, 372,805 more residents called Australia home over the year which was the largest increase in numbers since March 2014!

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Troy Gunasekera // National Manager