Even if interest rates continue to rise, most homeowners are well prepared to cope with it according to Bankwest.
Its customers have nearly tripled the rate of savings in offset accounts over the past two years with 90% of its borrowers head on their repayments. Westpac says 72% of its customers are ahead on their mortgages.
General Manager Home Buying Peter Bouhlas says many customers are in a better position than before the pandemic.
Bouhlas says many Australians are facing cost of living pressures, but their figures show plenty of customers have significant savings.
“We’ve seen throughout the pandemic that savings balances were on the rise and many homeowners took advantage of low interest rates to channel those savings into paying down their home loan,” he says.
“That behaviour is likely to prove extremely helpful for those who were able to pay extra off their home loan, as we enter a period of rising inflation and cost of living pressures.”