SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY
LIBERAL SENATOR FOR WESTERN AUSTRALIA
MEDIA RELEASE
20 March 2025
NATIONAL SPIKE IN BORROWERS WHO CANNOT MAKE MORTGAGE REPAYMENTS UNDER LABOR
The number of Australian mortgage holders running at least three months late on their repayments has increased in every state and the ACT, according to newly released data from the Reserve Bank of Australia.
These figures update data supplied to Senator Dean Smith by the RBA in 2023.
They confirm the growing mortgage hardship over that time, revealing the percentage of borrowers in 90-day arrears nearly doubled in some states.
Victoria was the worst affected nationally, with 0.66 percent of mortgage holders in 90-day arrears – up significantly on the 0.37 percent recorded in the earlier data.
New South Wales was the next highest, hitting 0.55 percent compared to 0.31 percent.
Queensland jumped from 0.29 percent to 0.42 percent of borrowers, South Australia from 0.33 percent to 0.47 percent, Western Australia from 0.43 percent to 0.51 percent, and the ACT from 0.21 percent to 0.34 percent.
Tasmania’s numbers were notable, increasing 0.18 percent between data sets to 0.47 percent.
The RBA data also covers the percentage of borrowers assessed as having a high mortgage burden.
These households are defined as spending more than 30 percent of their household income on mortgage repayments and being in the lowest income quartile.
Victoria and Tasmania led the way, with more than 10 percent of mortgage holders impacted – 11.4 percent in Victoria and 10.1 percent in Tasmania.
Except for the ACT, where numbers increased from 8.8 percent to 9 percent, all states experienced a slight decrease in the number of borrowers carrying a high mortgage burden between the data provided in 2023 and 2025.
This mortgage stress has been occurring as more than half of mortgage holders rolled from fixed rate to more expensive variable rate loans.
According to the RBA, between 58 percent (Queensland, WA and South Australia) and 64 percent (Victoria) of fixed term loans were due to expire during 2024.
Assuming a 25-year loan and interest rate of approximately 6.4 percent, the Bank estimates the switch to a variable rate loan translates to an extra $940 in monthly repayments on a $450,000 loan.
An $800,000 loan would cost an extra $1,740 per month and a $1,000,000 loan an extra $2,170.
This latest data proves something thousands of Australian mortgage holders know from personal experience – mortgage repayments are higher under Labor, and, combined with cost of living pressures, an increasing number of homeowners can no longer keep up with them.
Comments attributable to Senator Dean Smith:
“As the Federal election rapidly approaches, this new RBA data confirms the widespread, growing scale of mortgage stress under Labor.”
“More and more borrowers in every state and the ACT are falling behind on their mortgage repayments and it’s a direct consequence of the Albanese Government’s cost of living crisis and cumulative interest rate rises.”
“The recent interest rate cut by the RBA was welcome, but it will take many more before mortgage holders pushed to the edge by Labor’s dozen rate rises experience any meaningful relief.”
“Life is harder under Anthony Albanese and Labor, and only a Dutton-led Coalition Government has a plan to get the Australian economy – and mortgage holders – back on track.
ENDS