SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY
SENATOR FOR WESTERN AUSTRALIA
MEDIA RELEASE
9 September 2024
HOMEOWNERS IN MORTGAGE ARREARS NEARLY DOUBLES
Growing home loans, combined with the impact of 13 interest rates rises under Labor, has created a staggering increase in the number of Australians falling behind in their mortgage repayments – with WA the second worst affected state.
Senator Dean Smith, Shadow Assistant Minister for Competition, Charities and Treasury, has obtained mortgage arrears figures from the Reserve Bank of Australia revealing the significant challenges Australians are experiencing in the Albanese Government’s cost of living crisis.
The RBA figures confirm that the share of borrowers in 90-day arrears has surged across all states in Australia.
In some states like New South Wales and Victoria the rate of increase nearly doubled.
Share of borrowers in 90-day arrears (%)
NSW VIC QLD WA SA TAS
2023 0.31 0.37 0.29 0.43 0.33 0.29
2024 0.57 0.67 0.47 0.62 0.54 0.50
Source: RBA
Victoria has the highest share of borrowers in 90-day arrears at 0.67 percent, closely followed by Western Australia at 0.62 percent.
The latest ABS data shows that since the low interest rates that characterised the start of the pandemic in early 2020, the average loan in Western Australia has jumped by $146,800, or 36.1 percent.
It’s important to note that, during this time, the national average full-time adult weekly wage increased by just 14.2 percent, meaning income is not keeping pace with homeowner’s financial commitments.
Quotes attributable to Senator Dean Smith:
“Once again, Australian homeowners – including those in WA – are being reminded that life isn’t easy under Anthony Albanese and Labor.”
“What these new RBA numbers reveal is that many Australians are now unable to meet their monthly mortgage repayments and that is because Albanese Government cannot control its homegrown inflation, leaving the RBA to do the heavy lifting with rates rises.”
“Combine these rate rises with ever growing loans caused by a housing shortage aggravated by Labor’s record and unplanned migration policies, and you have a desperate situation.”
“My home state of WA is one of the worst affected by this housing crisis, with the average home up by 40% – or $174,400 – in just four years.”
“Gosnells in Perth, for example, is now ranked within the top eight areas in Australia with the highest share of borrowers that have a high mortgage burden, sitting at 15 percent according to the RBA.”
“The median price of a home in that suburb has also surged by 32.5%, and rents have risen by 20.8%”
“This is a crisis brought on by Labor’s economic mismanagement – and Australians are hurting as a result”
ENDS