Andrew C. Worthington
The usage and understanding of Australian household mortgages
purpose purpose paper establish profile mortgageholding households terms demographic socioeconomic financial characteristics assess current state knowledge concerning mortgage products australia designmethodologyapproach logit models predict owneroccupied investor mortgages mortgage understanding factors include financial literacy gender age ethnicity occupation education family structure household income savings debt understanding knowledge mortgage rates fees charges familiarity mortgage terms findings middleaged couples children increased likelihood owneroccupied mortgage nonenglish speaking background small business owner skilled tradesman increases likelihood investor mortgage understanding generally poorer females ruralregional households young better professionals universityeducated small business owners skilled tradesmen research limitationsimplications crosssection households period mortgage rates stable housing prices strong practical implications 40 per cent mortgageholding households understanding key mortgage terms 35 per cent understand main disadvantage fixed variable rates falls interest rates 15 per cent understand fees charges mortgage need financial literacy programmes continue expand originalityvalue first australian study model demand understanding mortgage products using household level data