SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER TO THE SHADOW TREASURER
SHADOW ASSISTANT MINISTER FOR THE COST OF LIVING
LIBERAL SENATOR FOR WESTERN AUSTRALIA
2 November 2026
MEDIA RELEASE
149,000 MORE NSW HOUSEHOLDS CARRYING HIGH MORTGAGE BURDEN UNDER LABOR
The number of NSW households estimated to be carrying a high mortgage burden has increased by 127 per cent since the Albanese Labor Government came to office, with four interest rate increases this year adding further pressure to struggling families.
Analysis of RBA and ABS data by Senator Dean Smith, Shadow Assistant Minister for the Cost of Living, estimates 266,300 NSW households were carrying a high mortgage burden in May 2026, compared with 117,100 in May 2022.
That represents an increase of 149,200 households, or 127 per cent, in just four years.
The underlying Reserve Bank data shows the proportion carrying a high mortgage burden in NSW increased from 3.7 per cent in May 2022 to 8.0 per cent in May 2026.
NSW now has the second-highest estimated number of households carrying a high mortgage burden in the country, narrowly behind Victoria.
The deterioration is being repeated across the country.
Across NSW, Victoria, Queensland, South Australia, Western Australia, Tasmania and the ACT, the estimated number of households carrying a high mortgage burden increased from around 348,000 in May 2022 to 868,000 in May 2026 — an increase of approximately 520,000 households.
Victoria had the highest estimated number in May 2026 at 267,700 households, followed by NSW at 266,300, Queensland at 149,200, Western Australia at 85,600, South Australia at 61,600, Tasmania at 22,000 and the ACT at 15,700.
Since May 2022, the estimated number of households carrying a high mortgage burden increased by 218 per cent in South Australia, 199 per cent in Tasmania, 190 per cent in the ACT, 161 per cent in Queensland, 154 per cent in Western Australia, 148 per cent in Victoria and 127 per cent in NSW.
The figures are particularly concerning because they do not capture the full impact of the Reserve Bank’s latest interest rate increases.
The RBA has increased the official cash rate four times in 2026, including its latest 0.25 percentage point increase in September, taking the cash rate to 4.60 per cent — its highest level in 15 years.
The four increases have added a full percentage point to the official cash rate this year, forcing mortgage holders to find hundreds of dollars more each month to meet their repayments.
For a household with a $731,000 mortgage, the four increases could add approximately $5,568 to annual repayments.
With another rate increase possible before Christmas, mortgage holders face the prospect of even greater financial pressure.
Quotes attributable to Senator Dean Smith:
“An estimated 266,300 NSW households are now carrying a high mortgage burden — almost 150,000 more than when Labor came to office.”
“That is a 127 per cent increase in just four years and represents a dramatic deterioration in the financial position of NSW families.”
“NSW now has the second-highest estimated number of households carrying a high mortgage burden in Australia, with more than a quarter of a million households affected.”
“But this is not just a NSW story. Across the states and ACT, an estimated 520,000 more households are carrying a high mortgage burden than when Labor was elected.”
“These figures were recorded before the full impact of the Reserve Bank’s latest interest rate increases, meaning the financial pressure on Australian families is almost certainly worse today.”
“Four interest rate increases this year have pushed borrowing costs to their highest level in 15 years, with families forced to find thousands of dollars more annually just to keep their homes.”
“Lose a job. Lose overtime. Have hours reduced. Face an unexpected expense. For a household already stretched by its mortgage, any one of those things can become a financial crisis.”
“Labor has lost control of the economy; inflation remains stubbornly high and Australian mortgage holders are paying the price.”
“For families already stretched to breaking point, another interest rate rise before Christmas could be the tipping point.”
“Australians cannot afford another year of Labor’s economic mismanagement.”
Table 1: High Mortgage Burden (%)
| May-22 | May-26 | Change | % Change | |
| New South Wales | 3.7 | 8.0 | 4.3 | 116.20% |
| Victoria | 4.2 | 9.7 | 5.5 | 130.90% |
| Queensland | 2.8 | 6.9 | 4.1 | 146.40% |
| South Australia | 2.6 | 7.9 | 5.3 | 203.80% |
| Western Australia | 3.2 | 7.7 | 4.5 | 140.60% |
| Tasmania | 3.1 | 8.9 | 5.8 | 187.10% |
| Australian Capital Territory | 3.0 | 8.0 | 5.0 | 166.70% |
Source: RBA.
Table 2: Estimated Number of Households with a High Mortgage Burden
| May-22 | May-26 | Change May 22 to May 26 | % Change | |
| New South Wales | 117,100 | 266,300 | 149,200 | 127% |
| Victoria | 108,200 | 267,700 | 159,600 | 148% |
| Queensland | 57,000 | 149,200 | 92,100 | 161% |
| South Australia | 19,400 | 61,600 | 42,200 | 218% |
| Western Australia | 33,600 | 85,600 | 52,000 | 154% |
| Tasmania | 7,400 | 22,000 | 14,700 | 199% |
| ACT | 5,400 | 15,700 | 10,300 | 190% |
| Australia | 348,100 | 868,100 | 520,100 | 149% |
Source: RBA
Total Value of Dwellings, June Quarter 2026 | Australian Bureau of Statistics
Household and Family Projections, Australia, 2021 – 2046 | Australian Bureau of Statistics
ABS Census 2021