One In Three Australians Expect To Have A Mortgage In Retirement

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New research
from Citibank shows that it’s not only diamonds that are forever, but
increasingly, mortgages too. Once something to be rid of as soon as possible,
demographic and sociological changes mean that a mortgage is fast becoming a
debt for life.

 

Offering an
inside glimpse to Citibank’s forthcoming report titled ‘Home as a Financial
Tool’ the findings revealed that while the importance of paying off a mortgage
is still rated highly amongst 95% of people, the reality is vastly different.

 

Martin Barter
Head of Mortgages at Citibank said: « As first time buyers become older and more
people start a new mortgage term when they move home, a growing number of people
will see their mortgage ‘crash’ into their retirement.

 

« Our research
paints a radically different picture of the mortgage landscape from say ten or
20 years ago. We are now seeing 45% of 18-44 year olds who expect to be shackled
to a mortgage in retirement. At a time when their average income is set to drop
and other financial pressures come into play, this is going to be an unwelcome
burden for many. »

 

On the other
side of the coin, the number of Australian’s who have paid off their mortgage
shows that more education is required – particularly amongst younger age groups
– on ways to pay off their mortgage faster.

 

Martin Barter
continued: « If this pattern continues, the great Australian dream of owning your
own home will be dead and buried. There are a number of options people can use
to get ahead with their mortgage – including the obvious ones like making
additional and more frequent repayments or using an offset account to reduce
interest.

 

« Used wisely,
refinancing can also be a useful alternative to free up equity which can then be
invested for higher returns. The end result can enable you to pay off a bigger
chunk of your mortgage than would otherwise have been possible. »

 

Citibank offers
a range of competitive mortgages including a two year fixed rate of 6.55%
(comparison rate 7.30%). Until March 31st, new customers will also be able to
take up the following offers;

 

– No
application fee for Citibank’s ‘Red Hot Basic’ loan (an upfront saving of $590)

–  First annual
package fee waived on all Citibank Mortgage Plus applications (a saving of $350)

 

Further
information on Citibank’s range of mortgages is available at www.citibank.com.au.
or by phoning 13 24 84.

 

All of the
above text is a press release provided by the quoted organization.
globalagingtimes.com accepts no responsibility for their accuracy.


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