How much of your income you really need to pay off a mortgage in Australia

Housing affordability is at the best level in a decade as a result of the coronavirus recession.

An Australian dual-income couple earning $1,305 a week after tax needed to dedicate 23 per cent of their monthly income to pay off a mortgage in September, down from 25.1 per cent a year earlier, an analysis by ratings agency Moody's showed.

This was also well below the decade-average level of 26.4 per cent, covering the aftermath of the Global Financial Crisis to now.

Housing affordability (Adelaide house pictured) is at the best level in a decade as a result of the coronavirus recession. In September, an Australian dual-income couple earning $1,305 a week after tax needed to dedicate 23 per cent of their monthly income to pay off a mortgage, down from 25.1 per cent a year earlier, an analysis by ratings agency Moody's showed

Housing affordability (Adelaide house pictured) is at the best level in a decade as a result of the coronavirus recession. In September, an Australian dual-income couple earning $1,305 a week after tax needed to dedicate 23 per cent of their monthly income to pay off a mortgage, down from 25.1 per cent a year earlier, an analysis by ratings agency Moody's showed

Buying a house or an apartment has become easier in every state capital city during the past year and was only expected to get better, with interest rates at a record-low of 0.25 per cent.

How much pay a couple needs to service a loan

SYDNEY: 29.9 per cent, down from 30.9 per cent a year earlier

MELBOURNE: 24.6 per cent, down from 27 per cent a year earlier

BRISBANE: 18.7 per cent, down from 21 per cent a year earlier

ADELAIDE: 19 per cent, down from 19.8 per cent a year earlier 

PERTH: 15 per cent, down from 17.4 per cent a year earlier

Source: Moody's Investors Service data for September 2020 on how much of their pay two-income couples need to spend to service a mortgage. Moody's didn't have data for Canberra, Hobart or Darwin

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'Australian housing affordability, which improved over the year to September, will continue to improve slightly over the next 12 months, because of low mortgage interest rates and lower housing prices,' Moody's said.

'For all capital cities, housing was the most affordable or near the most affordable in a decade in September.' 

Couples can now typically pay off a mortgage with less than a fifth of their income in Brisbane, Adelaide and Perth. 

Melbourne home loans can be serviced with less than a quarter of take-home pay but Sydney remains a challenge, with mortgages still consuming close to a third of salary levels. 

Australia's biggest cities are still among the least affordable in the world, when incomes were compared with house prices.

Before the coronavirus pandemic, Sydney and Melbourne in January 2020 ranked just behind Hong Kong and Vancouver in American think

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