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Articles on Mortgage stress

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Researchers found that families who send their children off to college face an increased risk for foreclosure. Monkey Business Images/www.shutterstock.com

Thinking about borrowing against your home to send your kids to college? Think again

The odds of foreclosure double for families who send their kids off to college, according to two researchers who say their findings show a need for new ways for Americans pay for higher education.
Highly inflated house prices are more concerning to people wishing to move from renting to purchasing a house (mostly potential first home buyers). Dan Peled/AAP

Housing costs are actually the same as in 1993, but renters still struggle

Even though house prices have risen substantially over recent decades, housing affordability for those with mortgages or own their houses outright hasn’t worsened
A real estate sold sign hangs in front of a west-end Toronto property. Canada’s newly announced housing strategy contains scant measures to help first-time buyers in pricey markets. THE CANADIAN PRESS/Graeme Roy

No help for would-be homeowners in Canada’s new housing strategy

Canada’s National Housing Strategy leaves a large segment of the population that must find a way to afford housing in the private market. More initiatives are needed to help first-time home buyers.
Bank lending standards need to be more consistent to avoid borrowers shopping around to find the lender that offers them the highest loan amount. Paul Miller/AAP

Banks shouldn’t underestimate the risk of concentration in the housing market

It’s not likely the Australian appetite for property will change but this means we need to hedge our bets against any risks by improving diversification and the way banks finance mortgages.
Unexpected increases in housing prices could have caused buyers considering home ownership to borrow more in order to buy a house, and encouraged homeowners to spend more through withdrawing the equity from their homes. Dan Peled/AAP

Australians are working longer so they can pay off their mortgage debt

Research finds higher levels of housing debt among pre-retirees are linked to them working for longer.
Slow but steady decline in home ownership continues as 23.6% of all Australian households now rent privately. David Gray/Reuters

Home ownership remains strong in Australia but it masks other problems: Census data

The latest 2016 Census data assesses what the national home ownership and rental rates are and how these vary location. It also gives us a picture of mortgage and rental costs.
The Conversation

Four ways an Australian housing bubble could burst

There’s been quite a bit of speculation over whether Australia has a property market bubble - where house prices are over-inflated compared to a benchmark - and when it might burst. According to housing…
Data from the Australian Prudential Regulation Authority (APRA) reveals the average balance on housing loans has barely trended upwards over the last five years. Tracey Nearmy/AAP

Three charts on mortgage stress: it isn’t as bad as you might think

When you look at the data (in three charts) on mortgage stress, the systemic risk of people not being able to repay their home loans appears small.

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