 Mortgage stress reduced
Mortgage holders are finding repayments are getting easier, as low interest rates begin to make a difference.
There has been a 10 per cent increase in the number of households making extra payments and fewer are struggling with their mortgage repayments.
Genworth chief executive Martin Barter credited the drop in interest rates for the trend but is urging anyone still struggling to meet repayments to seek help. Mr Barter said in a statement that if homeowners act quickly, and talk to their lender early on in financial hardship they were more likely to keep their homes and get back on track.
Genworth Financial's 2009 national survey of 2000 consumers conducted in late April and May revealed borrowers are reducing their level of debt across the board, with 21 per cent now debt-free compared with 18 per cent in 2008.
40 per cent of those questioned, who hold a mortgage 41 per cent are overpaying their mortgage, up from 31 per cent from 2008, Genworth said.
Declining rates of struggling home owners over the past year are shown in the survey too, with a five per cent fall. Now the level is 17 per cent.
The cash rate has been lowered by the Reserve Bank between September 2008 and April 2009 and a staggering 425 basis points taken off the official rate.
The median household income of survey participants was between $50,000 and $100,000 per year, and an average age of 41.4 years.
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