Australia’s mortgage burden is now above 1989 levels – when interest rates were 17%
New analysis from KPMG suggests that Australian mortgage holders are currently facing a higher debt burden than during the 1989 interest rate peak. The study challenges the narrative that previous generations faced more difficult home-buying conditions.
Why it matters
It provides critical context to the ongoing cost-of-living crisis and intergenerational wealth debates in Australia.
The late 1980s and early 90s are often cited as the historical peak for home loan stress but data shows borrowers faced tougher conditions in recent years, says KPMG’s Terry Rawnsley. Photograph: Darren England/AAP The late 1980s and early 90s are often cited as the historical peak for home loan stress but data shows borrowers faced tougher conditions in recent years, says KPMG’s Terry Rawnsley. Photograph: Darren England/AAP Housing Australia’s mortgage burden is now above 1989 levels – when interest rates were 17% KPMG analysis rebuts claims older generations had it harder when it came to buying and paying off a home
The article reports on economic data and expert analysis without taking a political stance on the findings.
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