Contrary to the pessimism of some pundits Australian households are managing the economic downturn reasonably well and are demonstrating a renewed confidence about borrowing money.
According to figures released by the MFAA/BankWest Home Finance Index today the vast majority of borrowers – 76 per cent– are easily managing their mortgage repayments and now feel financially better off than they did in April 2008.
The proportion of households likely to be in the market for a home loan in the next 12 months has also picked up to just over 18 per cent, compared to 15.6 per cent in April last year, and 47 per cent of respondents believe it is a good time to buy a home.
MFAA chief executive Phil Naylor said the survey results indicated that “the financial situation of the average Australian is not as dire as is being portrayed or is generally understood”.
“While the number of people expecting to take out a loan in the next year is nowhere near the highs we saw in November 2006 we should feel encouraged that there has been a small revival in interest,” he said.
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