SENATOR DEAN SMITH
SHADOW ASSISTANT MINISTER TO THE SHADOW TREASURER
SHADOW ASSISTANT MINISTER FOR THE COST OF LIVING
LIBERAL SENATOR FOR WESTERN AUSTRALIA
2 November 2026
MEDIA RELEASE
WA MORTGAGE BURDEN MORE THAN DOUBLES UNDER LABOR AS INTEREST RATES SURGE
The number of Western Australian households estimated to be carrying a high mortgage burden has increased by more than 150 per cent since the Albanese Labor Government came to office, with four interest rate increases this year adding further pressure to struggling families.
Analysis of RBA and ABS data by Senator Dean Smith, Shadow Assistant Minister for the Cost of Living, estimates 85,600 WA households were carrying a high mortgage burden in May 2026, compared with just 33,600 in May 2022.
That represents an increase of 52,000 households, or 154 per cent, in just four years.
The underlying Reserve Bank data shows the proportion carrying a high mortgage burden in WA increased from 3.2 per cent in May 2022 to 7.7 per cent in May 2026.
Western Australia recorded the fifth-largest percentage increase in the estimated number of households carrying a high mortgage burden among the seven states and territories examined, behind South Australia, Tasmania, the ACT and Queensland, but ahead of Victoria and New South Wales.
The deterioration is being repeated across the country, with the estimated number of households carrying a high mortgage burden surging from around 348,000 in May 2022 to 868,000 in May 2026 — an increase of approximately 520,000 households, or almost 150 per cent.
The figures are particularly concerning because they do not capture the full impact of the Reserve Bank’s latest interest rate increases.
The RBA has increased the official cash rate four times in 2026, including its latest 0.25 percentage point increase in September, taking the cash rate to 4.60 per cent — its highest level in 15 years.
The four increases have added a full percentage point to the official cash rate this year, forcing mortgage holders to find hundreds of dollars more each month to meet their repayments.
For a household with a $731,000 mortgage, the four increases could add approximately $5,568 to annual repayments.
With another rate increase possible before Christmas, mortgage holders face the prospect of even greater financial pressure.
Quotes attributable to Senator Dean Smith:
“An estimated 85,600 Western Australian households are now carrying a high mortgage burden — 52,000 more than when Labor came to office.”
“That is a 154 per cent increase in just four years and represents a dramatic deterioration in the financial position of WA families.”
“Western Australia has recorded one of the largest increases in mortgage pressure nationally, with the number of households carrying a high mortgage burden more than doubling under Labor.
“These figures were recorded before the full impact of the Reserve Bank’s latest interest rate increases, meaning the financial pressure on Australian families is almost certainly worse today.”
“Four interest rate increases this year have pushed borrowing costs to their highest level in 15 years, with families forced to find thousands of dollars more annually just to keep their homes.”
“For households already stretched by rising mortgage repayments and everyday living costs, losing a job, having hours reduced or facing an unexpected expense could trigger a financial crisis.”
“Labor has lost control of the economy; inflation remains stubbornly high and Australian mortgage holders are paying the price.”
“For families already stretched to breaking point, another interest rate rise before Christmas could be the tipping point.”
“Australians cannot afford another year of Labor’s economic mismanagement.”
Table 1: High Mortgage Burden (%)
| May-22 | May-26 | Change | % Change | |
| New South Wales | 3.7 | 8.0 | 4.3 | 116.20% |
| Victoria | 4.2 | 9.7 | 5.5 | 130.90% |
| Queensland | 2.8 | 6.9 | 4.1 | 146.40% |
| South Australia | 2.6 | 7.9 | 5.3 | 203.80% |
| Western Australia | 3.2 | 7.7 | 4.5 | 140.60% |
| Tasmania | 3.1 | 8.9 | 5.8 | 187.10% |
| Australian Capital Territory | 3.0 | 8.0 | 5.0 | 166.70% |
Source: RBA.
Table 2: Estimated Number of Households with a High Mortgage Burden
| May-22 | May-26 | Change May 22 to May 26 | % Change | |
| Western Australia | 33,600 | 85,600 | 52,000 | 154% |
| Australia | 348,100 | 868,100 | 520,100 | 149% |
Source: RBA
Total Value of Dwellings, June Quarter 2026 | Australian Bureau of Statistics
Household and Family Projections, Australia, 2021 – 2046 | Australian Bureau of Statistics
ABS Census 2021