Single Australians, meanwhile, are losing confidence in their homeownership dreams
This Valentine’s Day, spare a thought for the couples who are increasingly putting property ahead of passion to keep their homeownership dreams alive.
According to the latest Mortgage Choice Home Loan Report, 62% of respondents said mortgage repayments or saving for a deposit have affected their relationship over the past 12 months.
Many are trading nights out for extra repayments, with 29% opting to stay in instead of going on dates, 24% cutting back on date nights and another 24% spending less on gifts for birthdays and anniversaries.
Money pressures are also biting emotionally, with nearly one in five couples saying financial stress has impacted their relationship and 13% reporting that one or both partners have taken on extra work or hours to stay on top of repayments or save faster.
Around 12% of respondents admitted to having disagreements over money.
Yet prospective homebuyers are approaching mortgage commitments with a largely egalitarian mindset, with 40% of prospective buyers planning to split them evenly and 18% planning to split repayments based on income, with the higher earner contributing a greater share toward mortgage repayments.
The survey revealed that 47% of prospective buyers plan to split upfront purchase costs, such as the deposit and stamp duty, 50/50.
The singles club
Singles, meanwhile, are battling what Waldron describes as a de facto “single tax” in the housing market.
Only 29% of singles feel confident they can buy on one income, while almost half believe being in a couple is the only realistic way to afford a home.
The burden is heaviest on single Millennials, with 70% saying they feel priced out of the market because they’re buying alone.
Mortgage Choice chief executive Anthony Waldron said the findings underline the trade-offs Australians are making to hold onto – or get onto – the property ladder.
“Our survey has revealed that Australians attempting to navigate the market solo are feeling defeated, and those in a relationship have admitted to making financial sacrifices to keep their home loan and property goals on track,” he said.
Rate worries
The research also highlighted questions around preparedness for future rate hikes.
Nearly 60% of survey respondents with a mortgage kept their repayments at the higher level after interest rate falls in 2025, but 26% lowered repayments to free up cash, while 10% did not realise they could change their repayments.
Waldron said: “Pleasingly, our survey reveals that most borrowers are proactively managing their home loan. We asked respondents with a mortgage how they would manage if their variable rate increased by 25 basis points and 35% said they could handle it easily without changing their spending, while 43% say they could manage but would need to cut back on their discretionary spending.
“However, 13% of borrowers said they would struggle to meet their home loan repayments and would need to dip into their savings if their interest rate rose by 25 basis points.”
Central bank interest rates did indeed increase by 25-basis-points to 3.85% in February, with the Reserve Bank of Australia (RBA) citing persistent inflation fears and an increasingly tight employment market as primary factors behind the rate rise.
“The Reserve Bank’s decision to lift the cash rate at its February monetary policy meeting is a timely reminder that if you’re worried about how rate hikes might impact your lifestyle, being proactive is your best defence. Reach out to a mortgage broker to learn how you can prepare for future rate rises,” said Waldron.
Among survey respondents who planned to buy property in the next 12 months, 42% said they planned to buy on their own; 53% said they planned to buy with family; and 1% planned to buy with someone else.
