Mortgage Stress and Precarious Home Ownership: Implications for Older Australians

AHURI Final Report No. 319, Australian Housing and Urban Research Institute Limited, Melbourne, doi:10.18408/ahuri-8118901

129 Pages Posted: 17 Sep 2019

See all articles by Rachel Ong

Rachel Ong

Curtin University - Centre for Research in Applied Economics; Curtin University - School of Economics and Finance

Gavin A. Wood

RMIT University - School of Economics, Finance and Marketing

Melek Cigdem-Bayram

School of Global, Urban & Social Studies

Silvia Salazar

Curtin University - Bankwest Curtin Economics Centre

Date Written: August 27, 2019

Abstract

This research investigated the growing numbers of middle-aged and older Australians who are carrying mortgage debt into retirement and paying off higher levels of debt relative to house values and income. Between 1987 and 2015, mortgage debt among older mortgagors increased by 600 per cent (from $27,000 to over $185,000). These trends have significant consequences for older Australians’ wellbeing, retirement wealth management and government incomes policy and housing assistance programs.

Keywords: mortgage debt, mortgagors, mortgage stress, repayment risk, investment risk, wellbeing, consumption, superannuation, housing assistance, australia

JEL Classification: D14, I18, R21

Suggested Citation

Ong, Rachel and Wood, Gavin A. and Cigdem-Bayram, Melek and Salazar, Silvia, Mortgage Stress and Precarious Home Ownership: Implications for Older Australians (August 27, 2019). AHURI Final Report No. 319, Australian Housing and Urban Research Institute Limited, Melbourne, doi:10.18408/ahuri-8118901. Available at SSRN: https://ssrn.com/abstract=3450192

Rachel Ong (Contact Author)

Curtin University - Centre for Research in Applied Economics ( email )

GPO Box U1987
Perth, Western Australia 6845
Australia

Curtin University - School of Economics and Finance ( email )

GPO Box U 1987
Perth, Western Australia 6845
Australia

Gavin A. Wood

RMIT University - School of Economics, Finance and Marketing ( email )

Level 12, 239 Bourke Street
Melbourne, Victoria 3000
Australia

Melek Cigdem-Bayram

School of Global, Urban & Social Studies ( email )

Melbourne
Australia

HOME PAGE: http://https://www.rmit.edu.au/contact/staff-contacts/academic-staff/c/cigdem-dr-melek

Silvia Salazar

Curtin University - Bankwest Curtin Economics Centre ( email )

GPO Box U1987
Perth, WA 6845
Australia

HOME PAGE: http://https://bcec.edu.au/about/people/silvia-salazar/

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