Victorians are being saddled by more mortgage debt as a legacy of the property boom of 2010 says the latest ING Direct Financial Wellbeing Index.

The median mortgage debt in Victoria has risen to $211,974 – up from $174,336 during the third quarter, an increase of close to 22 percent. The state’s first home owners are among those hardest hit, with more than one in ten planning to refinance their home loan.

Key findings for the last quarter of 2010 revealed that:

  • Only 39 percent of the state’s mortgage holders are happy with their loan – well below the national average of 46 percent.
  • Baby boomers are most likely to be satisfied with their mortgage at 50 percent of those surveyed while Gen Y –those most likely to be first home owners, are least happy with their home loan at 36 percent.
  • One in three Victorians plan to switch lenders.
  • 5 percent are already in the process of refinancing – a figure that rises to 13 percent for Gen Y homeowners.

In the fourth quarter of 2010, financial wellbeing overall improved in Victoria as the Index rose from 108 in the third quarter to 112 in the fourth quarter. However declines in comfort levels were noted across several aspects of household finances. Comfort with savings fell from 3.7 to 3.6. Households are also less confident about their ability to pay regular bills – comfort levels fell from 4.0 to 3.9.

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