THE average size of a home loan has risen by 40 per cent since 2005, leaving more than half a million Australians struggling to meet their repayments.
The findings, by Fujitsu Consulting, show rising interest rates pushed 218,000 borrowers into severe mortgage stress last month, The Australian reported.
Fujitsu Australia executive director Martin North said that figure was expected to increase to 290,000 by December.
The research group forecasts that house prices will rise by up to 12 per cent around the country over the next year.
“Strong demand for property, fuelled by migration, the re-emergence of property investors and an easing of concerns relating to unemployment, continues to drive the market,” Mr North said.