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Borrowers who are struggling to save a deposit are probably spending half their income on rent, utilities and groceries, according to new research.
A study by ING DIRECT found that Australians on average spend 20.5 per cent of their salaries on rent and mortgage, 15.5 per cent on utilities and 12.1 per cent on groceries.
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Australians also save just 6.2 per cent of their salary, with 18 per cent of households spending more than they earn.
Western Australians were found to pay more than any others on mortgage and rent payments, spending an average of $1,249 per month.
South Australians came in last by spending $787 per month on mortgages and rent, while also having the nation’s highest saving rate at $416.
The report also found that Australians devote the second biggest chunk of their salary to household bills, spending an average of $633 per month.
New South Wales tops the list at $682 per month, while Victoria comes last at $585 per month.
WA residents buy the most groceries at $562 per month, while Queenslanders buy the least at $509 per month.
The average Australian also devotes $428 per month to credit card repayments, or 9.9 per cent of their salary.
The rest of their salaries goes to transport at 6.9 per cent, holidays at 5.8 per cent, entertainment at 4.3 per cent, health at 4.2 per cent and clothing at 3.2 per cent.
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