SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER TO THE SHADOW TREASURER
SHADOW ASSISTANT MINISTER FOR THE COST OF LIVING
LIBERAL SENATOR FOR WESTERN AUSTRALIA
8 May 2026
RBA RATE HIKE PILES PRESSURE ON LABOR’S MORTGAGE BELT
The Reserve Bank’s latest decision to lift the cash rate by another 0.25 percentage points will heap further financial pressure on Australian families already struggling under the weight of rising mortgage repayments, persistent inflation and higher living costs.
With inflation remaining stubbornly high, concerns continue to grow that excessive government spending is making the Reserve Bank’s task harder and keeping interest rates higher for longer.
New analysis commissioned by Senator Dean Smith from the Federal Parliamentary Library reveals that the communities most exposed to rising interest rates are overwhelmingly concentrated in Labor-held electorates across Australia’s outer suburban mortgage belt.
Using the latest available ABS Census data*, the analysis identifies the 20 suburbs with the highest proportion of households paying off a mortgage.
Strathnairn in the ACT recorded the highest concentration, with 85.4 per cent of households servicing a mortgage.
It was followed by Denman Prospect in the ACT (78.2 per cent); Brabham-Henley Brook in Perth’s north-east (75.5 per cent); Clyde North-South in Melbourne’s outer south-east (73.8 per cent); Piara Waters-Forrestdale in Perth’s south-east (72.7 per cent); Googong in NSW (71.6 per cent); Flagstone West-New Beith south of Brisbane (70.8 per cent); Eynesbury-Exford on Melbourne’s fringe (70.2 per cent); and the ACT suburbs of Taylor (70.0 per cent), Throsby (69.4 per cent) and Moncrieff (68.8 per cent).
The list also includes Marsden Park-Shanes Park in western Sydney and Fraser Rise-Plumpton in Melbourne (both 68.6 per cent); Byford in Perth’s south-east (68.4 per cent); Landsdale in Perth’s north-west (68.1 per cent); Mickleham-Yuroke north of Melbourne (67.7 per cent); Harrisdale in Perth’s south-east (67.2 per cent); Box Hill-Nelson in Sydney’s north-west (67.1 per cent); Aveley in Perth’s north-east (67.0 per cent); and Carramar in Perth’s north-west (66.0 per cent).
With the exception of Flagstone West-New Beith and part of Clyde North-South, every suburb identified in the analysis sits within a federal Labor-held electorate.
That includes four suburbs in the ACT seat of Fenner, three in Burt in Western Australia, two in Hasluck, and one suburb each in Bean, Holt, Eden-Monaro, Hawke, Chifley, Gorton, Cowan, Calwell, Greenway and Pearce.
The Parliamentary Library analysis also examined changes in mortgage repayments between August 2021 and April 2026 — a period covering almost the entirety of the Albanese Government’s term in office.
In Strathnairn, median monthly mortgage repayments increased by more than $1,000 over that period, rising from $2,191 in August 2021 to $3,253 by April 2026.
Following the Reserve Bank’s latest rate rise, median repayments in Strathnairn are now estimated to have climbed to $3,289 per month — intensifying pressure on households already grappling with rising grocery prices, insurance premiums, electricity bills and fuel costs.
The modelling also examined the impact of three additional 25 basis point increases. Under that scenario, median repayments in Strathnairn would rise to $3,383 per month by January 2027 — up $1,192 compared with August 2021.
Because the Census benchmark dates back to August 2021, the number of households now exposed to higher repayments is likely substantially larger, reflecting strong population growth and extensive new housing construction in outer metropolitan growth corridors.
At the same time, Australians are taking on larger mortgages than ever before, with ABS Lending Indicators showing the average home loan increased by $42,000 in the December quarter alone to reach $736,000.
Comments attributable to Senator Dean Smith:
“The Reserve Bank’s latest rate rise is another blow for Australian families already under enormous financial pressure.”
“Labor’s spending problem is making it harder to get inflation under control and keeping interest rates higher for longer.”
“This analysis shows the suburbs carrying the heaviest mortgage burden are overwhelmingly located in Labor-held seats across Australia’s outer suburban growth corridors.”
“In suburbs like Strathnairn, mortgage repayments have now surged to an estimated $3,289 a month following the latest rate rise.”
“Many families are now paying hundreds — and in some cases more than a thousand — dollars extra every month on their mortgage compared with just a few years ago.”
“The Reserve Bank has repeatedly warned that inflation remains persistent and that excessive government spending is adding pressure to the economy.”
“Unless the Albanese Government restores fiscal discipline and gets spending under control, Australian households face the real prospect of even higher repayments in the months ahead”