http://www.domain.com.au/Public/Article ... e%20stress
Quote:
Instead of defining mortgage stress as borrowers spending 30% of their after-tax monthly household income on repayments, Fujitsu Consulting asked respondents to fill out a 13-part questionnaire.
Mild mortgage stress is defined as occurring when households are forced to reorganise their spending.
Mild mortgage stress is defined as occurring when households are forced to reorganise their spending.
Good to see that mortgage stress is no longer defined as 30% of after-tax monthly income spent on the mortgage. Under that definition - with a $750k mortgage, our incomes and saving about $20k per year (after expenses) - we'd be under "mortgage stress"
But under the updated definition of "re-organised spending" they thought that 784,000 households were struggling and it would increase to 900,000 in September. Scary stuff for some out there.