A seaside town and an attractive riverside inner-city suburb have the lowest mortgage stress levels in Australia.
Australians wanting to avoid the pain of rising interest rates don’t need to live far from the ocean, with a coastal town two hours away, 110 miles northwest of Adelaide and an upscale part of Perth considered easygoing places.
service a mortgage.
Real estate data group PropTrack has revealed the most affordable places for a working couple to buy a house or apartment, if they both earn average incomes for the area.
The South Australian town of Fisherman Bay, on the Yorke Peninsula overlooking Spencer Gulf, is so affordable that it’s possible to buy a three-bedroom home for less than ,000 and be right by the water.
PropTrack economist Angus Moore said regional areas offer more options for those looking to buy a home.
“There are still parts of Australia where mortgages are still quite affordable relative to average suburban incomes,” he said.
‘They are mainly in regional areas, where prices are lower.’
A seaside town and desirable riverside inner-city suburb have Australia’s lowest mortgage stress levels (pictured are homes in Fisherman Bay that typically cost $60,000)
A three-bedroom “family cabin” just off the beach sold for $52,250 in February.
The median house price in Fisherman Bay was $60,000 in May, in zip code 5522 where $61,000 is the median double income – a level below Australia’s median wage of $65,000 for an individual.
PropTrack calculated monthly mortgage payments of $270 consumes just 2.7 percent of income for buyers with a 20 percent mortgage payment of just $12,000.
For those looking to live near the beach in a big city, posh Mosman Park in western Perth has an affordable median apartment price of $350,000 – a level well below the $2 million midpoint for homes.
The suburb of Swan River – which is adjacent to Cottesloe and home to millionaires – has a median household income of $170,200, in zip code 6012.
Monthly mortgage payments of $1,660 consume just 5.9 percent of income for those buying a typical unit, with a 20 percent mortgage payment of $70,000.
But it would still be affordable for someone with an average full-time salary of $94,000.
“Even in the capital cities, there are some areas where mortgage payments remain on the more affordable side relative to income,” Moore said.
Chic Mosman Park in western Perth has an affordable median apartment price of $350,000
These areas are spared the mortgage stress phenomenon plaguing much of Australia after the Reserve Bank raised interest rates this month for the 12th time since May 2022.
Easiest places to pay off a mortgage
HOUSE: Fisherman Bay, South Australia: median price $60,000 and monthly mortgage payments of $270
UNIT: Mosman Park, Perth: median price $350,000 and monthly mortgage payments of $1,660
Source: PropTrack based on a median home or unit price on a 30-year loan and a 20 percent mortgage deposit
The major banks last week raised their standard floating rate by 0.25 percentage point to account for the June RBA money rate hike of 25 basis points to an 11-year high of 4.1 percent.
But Australia’s two biggest lenders – Commonwealth Bank and Westpac – surreptitiously raised their variable rates outside of an RBA move on Friday, chasing new customers living in their homes.
Westpac raised its floating rate by 15 basis points, bringing its Flexi First Option Home Loan rate for a borrower with a 20 percent mortgage deposit to 6.09 percent.
The Commonwealth Bank raised its equivalent variable rate by 10 basis points, bringing a Wealth Package loan for new owner-occupant customers to 6.44 percent.
RateCity research director Sally Tindall noted that the big banks were no longer offering variable rates below six percent, just over a year after mortgage rates started at a “two.”
“If you’re looking for a home loan, take the time to look beyond the big four to see what’s possible,” she said.
“A lower interest rate helps keep your new mortgage payments under control, but it also increases your borrowing capacity in an incredibly difficult market.”