SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY
LIBERAL SENATOR FOR WESTERN AUSTRALIA
MEDIA RELEASE
NEW RBA DATA CONFIRMS JUMP IN WA MORTGAGE PAIN UNDER LABOR
The toll of the Albanese Government’s dozen interest rate rises on Western Australian mortgage holders is rising.
New Reserve Bank of Australia data sourced by Senator Dean Smith reveals a significant increase in the WA homeowners who are three months or more behind on their mortgage repayments.
0.51 percent of borrowers in the West are now in 90-day arrears according to the RBA – up from 0.43 percent in data the Bank provided to Senator Smith in 2023.
It is third highest rate of 90-day mortgage arrears in Australia, with only New South Wales and Victoria recording worse results of 0.55 percent and 0.66 percent.
The RBA data also highlights that 9.8 percent of WA borrowers are classified by the RBA as having a high mortgage burden.
This is also the third largest number in Australia.
The high proportion of fixed rate loans that have rolled over to higher variable rates has not helped.
58 percent of fixed rate loans in the state were due to expire in 2024, according to the RBA.
The average mortgage repayment increases for affected homeowners puts this into context.
The RBA calculates that – assuming a 25-year loan and an interest rate of approximately 6.4 percent – those with a $450,000 loan switching to variable interest would have to make monthly repayments of $3,000, an extra $940 compared to their fixed rate repayments.
On the same basis, an $800,000 loan would carry monthly repayments of $5,340, an extra $1,740, while a $1,000,000 loan would carry a monthly repayment of $6,670, an extra $2,170.
This data makes clear that mortgage stress in WA is both very real and worse – not better – after two additional years of economic mismanagement by the Albanese Government.
The growing number of borrowers unable to make their mortgage repayments is a direct result of the cumulative interest rate rises and ongoing cost-of-living pressures Labor has inflicted on Western Australians.
Comments attributable to Senator Dean Smith:
“On the eve of the Federal election, this data leaves no doubt that more and more Western Australian mortgage holders have been pushed to the edge under the Albanese Government.”
“Not only is the number of WA mortgage holders in 90-day arrears up significantly, but the RBA now classifies nearly 10 percent of borrowers as having a high mortgage burden – all due to Labor’s cumulative interest rate rises and cost-of-living crisis.”
“The recent interest rate cut was welcomed by all, but a dozen rises during Labor’s term means many more will be needed to provide genuine relief to those being crippled by mortgage stress.”
“Only a Dutton-led Coalition Government has a plan to rein in spending, properly address inflation, and get our economy – and our mortgage holders – back on track.”
ENDS