SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY
SENATOR FOR WESTERN AUSTRALIA
MEDIA RELEASE
16 September 2024
RBA FIGURES CONFIRM EAST COAST MORTGAGE STRESS
Ballooning property prices, combined with 13 interest rate rises since Federal Labor came to power, have resulted in a significant increase in mortgage holders falling behind on their repayments.
Senator Dean Smith recently obtained exclusive mortgage arrears figures from the Reserve Bank of Australia.
They reveal the extent to which Australians across the nation are struggling through the Albanese Government cost of living crisis – with more and more households unable to cover their expenses.
Australia’s most populous states, New South Wales and Victoria, are among the worst affected.
In fact, Victoria tops the list of Australian states with the biggest share of borrowers in 90 days arrears at 0.67%, which is an 81% increase in the last year.
New South Wales was the third highest at 0.57%, increasing 83% in 12 months – an ever faster rate than Victoria.
The complete figures for all Australian states are:
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
New South Wales and Victoria are home to eight of the top localities in Australia with the highest level of mortgage stress, including Tullamarine (17.9%) and Merrylands/Guildford (15.9%).
These widespread levels of financial pressure are also underlined by the latest housing affordability figures from the Real Estate Institute of Australia, which reveal that about half the average family income in the two states is needed to meet loan repayments.
The impact is compounded by the fact that 63% of fixed loans in New South Wales, and 64% in Victoria, are set to expire this year.
It means borrowers that took advantage of low interest rates during the pandemic, with no anticipation of the interest rate increases triggered by Labor’s economic mismanagement, are now on the cusp of a significant financial burden.
Add to this marked housing price inflation, where the median price of a house in Sydney has jumped to $1.4 million, while in Melbourne it is nearly $1 million.
These factors are combining to create a perfect storm for homeowners – and potential buyers.
It is the reality for Australians under the Albanese Government.
Quotes attributable to Senator Dean Smith:
“This data from the RBA shows that a bad situation is getting even worse on Labor’s watch.”
“There are thousands of homeowners who cannot keep up with higher mortgage repayments on top of other cost of living expenses.”
“The numbers in Victoria are especially concerning, but it’s the rate of increase in both Victoria and New South Wales – more than 80% in year – that indicates how serious this is getting and how quickly its occurring.”
This is the direct result of the Albanese Government’s failure to curb homegrown inflation, leaving the RBA to do the heavy lifting, as well as the stagnating economic growth, housing shortage and other policy failures we’ve come to expect from Labor.”
ENDS