Media Statement - 11th July 2007
New Census data published today shows eight back to back interest rate hikes under John Howard are taking their toll with one in four households with a mortgage now financially stretched to meet their monthly mortgage repayment.
Across Australia the number of households in mortgage stress – that is, paying more than 30 per cent of their gross income in mortgage repayments – has risen from 18.3 percent of mortgage holders in 2001 to 27.2 percent in 2006.
That’s more than a quarter of a million extra households who are stretched.
This alarming picture is likely to have deteriorated further since, with two of the eight rate hikes only coming into effect after the 2006 Census data was collected.
The Census data shows just how badly Mr Howard has let Australian families down after saying he could be trusted to ‘keep rates at record lows’ at the last election.
The data which is for owner occupier mortgages only, demolishes John Howard’s claim that only he can protect Australian families from interest rate pain.
Only yesterday Peter Costello was still claiming interest rates are ‘low’.
But this Census data shows that Mr Howard and Mr Costello’s eight interest rate rises are hitting hard right across the country, particularly in the mortgage belts where the number of households who are stretched has soared:
NSW: Greenway: mortgage stress up 118%
Lindsay: mortgage stress up 112%
Victoria: Deakin: mortgage stress up 89%
McMillan: mortgage stress up 108%
SA: Kingston: mortgage stress up 112%
Makin: mortgage stress up 96%
QLD: Moreton: mortgage stress up 96%
Hinkler: mortgage stress up 94%
This actual data - not sample surveys or averages - shows Mr Howard and Mr Costello clearly cannot be trusted to look after the interests of Australians with mortgages.