In your own imagination, what do you consider the average mortgage?

[kimmi]

Well, it's Friday night and I'm bored. I work away from home for two weeks at a time, and my Friday nights consist of googling various things. Tonight's topic was money and it got me to thinking.

I know how much my mortgage is, and I don't think it's particularly high. Now I live on the outskirts of Brisbane, so my home isn't an inner city price. It's a lovely home, about 25 years old, so not new, but has everything we could dream of. I was astounded on my googling rampage how much your average family's mortgage is. Some people even saying that they would start to worry if their mortgage was over $1 million.

We are comfortable and financially responsible in our home, but I was honestly shocked.

Back to the original question, without finding real statistics, what do YOU think the average mortgage is?

[onthefly]

500-600k? Which seems astronomical to me. We could probably afford $250k Oh well.

[*EJ*]

I couldn't begin to imagine any more than that either MadB. Our repayments are more than half of what we bring in each week (pay weekly). We could not live on anymore than that.

[kimmi]

Oh I agree that 500k + is huge.... I mean we don't struggle, but I want a quality of life, a baby (IVF is expensive) and I can't imagine committing to repaying that kind of mortgage for the next 25 years..

I read somewhere your mortgage shouldn't be anymore than 3 times the amount of your combined salary for the year. Our mortgage is 1.5 times the amount of our salary (thank god) but should be ever be blessed with a baby and I dont work, our percentage is going to go right up..

[wysiwyg]

I read somewhere your mortgage shouldn't be anymore than 3 times the amount of your combined salary for the year. Our mortgage is 1.5 times the amount of our salary (thank god) but should be ever be blessed with a baby and I dont work, our percentage is going to go right up..

I have often heard the 3 times thing, here and in the UK - when I was working ours was 2 times the amount of salary, now I am not working is more like 5 times! I do think it depends on your lifestyle - we were quite comfortable with 2 times - now I am not working if we hadn't overpaid and had redraw available we would fall slightly short each month (and without Baby Bonus etc we would be really stuck).

[kimmi]

according to the different websites, the average mortgage (not property value) is 'about' $380000. Its amazing to see on some boards what people perceptions are. As I mentioned earlier, there are so many people out there saying 800k+ 1million+

[LuluHB]

Ooooooh. I was pretty close. Do I win my mortgage getting paid off?????? ;-)

[kimmi]

Ooooooh. I was pretty close. Do I win my mortgage getting paid off?????? ;-)

Sure thing.... The cheque is in the mail

[kimmi]

So on top of the mortgage you have other costs. Deposit (10% minimum for most) more than 20% if you want to start thinking about avoiding Lenders Mortgage insurance...

I know when we sold our investment unit to be able to buy our first 'home' together, the fees to sell and buy alone (including deposit) exceeded 50k... My mind is spinning. I wish money was free Then I'd have so much more bahaha

[Astrid]

We are about 1.5 times our combined income (well now since I am working). I would not even want consider a mortgage of 3 times our income, might be doable once I no longer have childcare fees. I only classify us as semi-comfortable at the moment.

[LuluHB]

Woohoo. Thanks Kimmi. You're a star. Might just wander down the drive and wait for the mail man . . .

[blessedatlast]

I was going to say 300 - 350?? No idea, I have never had a mortgage and unless I have enough of a windfall to get me in the market I probably never will lol.

Are you going to tell us Kimmi or do I have to do my own googling?

[LuluHB]

I think (at least for Perth where the real estate market has only just recently started to get less completely nuts) around $400K is probably fairly normal.

[Trillian]

500-600k? Which seems astronomical to me. We could probably afford $250k Oh well.

I reckon that would be a fair average for people in the city. In the country though, I reckon 200k would be average. The amount of some mortgages blow my mind - we paid less than 500k for our working farm that will bring us an income on it's own let alone what we can earn ourselves, yet some people don't think twice about a 500k mortgage on a house that earns them nothing kwim? I just don'tknow how anyone can be realistically expected to pay off their mortgage in their lifetimes. What happens to it if you die and you haven't paid it off? DOes the bank get it, or does it get sold and if you're lucky you might get what's left over?

[meow]

I would guess $300-$400K as the average.

We are tossing up moving to Sydney and I had sworn off it due to house prices and the massive mortgage we would have to get. But my H can get much better work there, work he would really enjoy and it pays well too. So based on the salary he would earn it would possibly be worth our while, which is how house prices manage to be so high in Sydney I guess.

Is the 3 x your salary thing based on gross or net income?

[Cassius2]

hmmm from a melbourne perspective i would of thought 300-400k? it is astronomical.

like meow, we were thinking about sydney or melbourne, but at the time melbourne was more affordable so we had to go with that...

dont move meow lol!

[Astrid]

I reckon that would be a fair average for people in the city. In the country though, I reckon 200k would be average. The amount of some mortgages blow my mind - we paid less than 500k for our working farm that will bring us an income on it's own let alone what we can earn ourselves, yet some people don't think twice about a 500k mortgage on a house that earns them nothing kwim? I just don'tknow how anyone can be realistically expected to pay off their mortgage in their lifetimes. What happens to it if you die and you haven't paid it off? DOes the bank get it, or does it get sold and if you're lucky you might get what's left over?

My financial planner knows too many people retiring with a mortgage and having to use their super to pay if off. His main advise to us was to get out mortgage paid off as quick as we can and in 10 years (well now 7) start putting extra into super. (anyway this reminds me of a thread topic I want to start)

[meow]

What happens to it if you die and you haven't paid it off? DOes the bank get it, or does it get sold and if you're lucky you might get what's left over?

Well, you'll be dead so you don't get anything The mortgage has to be paid off so whoever inherits the house can either pay it off or sell the house to cover the cost.