Home loan interest rates and repayments

November 2007

Adrian Makeham-KirchnerStatistics and Mapping Section

Introduction

The Reserve Bank Board meets on the first Tuesday of every month. At the meeting the Board makes decisions about the level of interest rates, the cash rate[1], that it is targeting through the operations of monetary policy. If the Board takes a decision to adjust the cash rate target the new target can lead to adjustments in variable rate credit facilities in Australia.

On 7 November 2007, the Reserve Bank increased the cash rate target by 0.25 percentage points.[2]

Mortgage affordability and the ability to purchase a home has become a highly sensitive political issue in recent years. Indeed, the issue of indebtedness of Australian households, through credit cards, personal loans and mortgages, is now a regular topic of debate.

This Background Note provides a resource on housing interest rate movements and their impact on Australian mortgage holders.

Reserve Bank and Interest Rates

The Reserve Bank Board meets on the first Tuesday of every month (except January) to set a cash rate target.[3] This cash rate target is the desired rate of interest on overnight loans between banks.

Cash rate targeting is one aspect of the implementation of monetary policy by the Reserve Bank of Australia (RBA).[4] The intention in shifting the cash rate upwards or downwards is to change possible future paths of price inflation. This intention is driven by a policy established in August 1996, where the RBA was formally tasked with targeting an inflation rate of between two and three per cent.

The difference between actual inflation and expected inflation is an important aspect of understanding why rates change. For example, in more recent periods, the Australian Bureau of Statistics (ABS) annualised headline inflation rate[5] is approximately 1.9 per cent per annum and the RBA measures of core inflation[6] sit between 2.9 and 3.1 per cent per annum. [7] Theoretically these rates do not suggest significant divergence from the RBA target. However, being historical in nature, the measures do not provide guidance on whether the future expected rate of inflation will be within the RBA target range. Therefore if there are expectations of high future inflation, due to matters such as capacity constraints or potentially higher wages from a constrained labour market, then the RBA increases the cash rate target to reduce inflation generating economic activities, like consumer expenditure and borrowing.

The RBA view on the future of inflation and economic activity in Australia can be assessed within the quarterly Statements on Monetary Policy[8].

The cash rate is crucial to home loans and consumer credit because a change in the cash rate is typically transmitted directly and immediately to variable rate loans. Variable rate loans are typically the most common type of loan written for home mortgages in Australia.[9] A secondary, but not insubstantial, impact of rate changes is the future impact on existing fixed rate home and personal loans.[10]

Cash rate history

The Reserve Bank Board has officially announced its cash rate target only since the beginning of 1990.

Table 1 provides a history of the cash rate target, including the date of changes in the target and the relevant increment to the cash rate since the official target has been published.

The last ten movements in the target, beginning in May 2002, have been upwards with each increment adding 0.25 percentage points to the cash rate. The cash rate has gone from 4.25 per cent per annum to 6.75 per cent per annum over this period. This is a change of 2.50 percentage points, and a relative change of 59 per cent. The most recent change was announced on 7 November 2007, during the federal election campaign.

Table 1: RBA Monetary Policy Changes[11]

Released

Change in cash rate (Per cent)

New cash rate target (Per cent)

7 Nov 2007

+0.25

6.75

8 Aug 2007

+0.25

6.50

8 Nov 2006

+0.25

6.25

2 Aug 2006

+0.25

6.00

3 May 2006

+0.25

5.75

2 Mar 2005

+0.25

5.50

3 Dec 2003

+0.25

5.25

5 Nov 2003

+0.25

5.00

5 June 2002

+0.25

4.75

8 May 2002

+0.25

4.50

5 Dec 2001

-0.25

4.25

3 Oct 2001

-0.25

4.50

5 Sep 2001

-0.25

4.75

4 Apr 2001

-0.50

5.00

7 Mar 2001

-0.25

5.50

7 Feb 2001

-0.50

5.75

2 Aug 2000

+0.25

6.25

3 May 2000

+0.25

6.00

5 Apr 2000

+0.25

5.75

2 Feb 2000

+0.50

5.50

3 Nov 1999

+0.25

5.00

2 Dec 1998

-0.25

4.75

30 Jul 1997

-0.50

5.00

23 May 1997

-0.50

5.50

11 Dec 1996

-0.50

6.00

6 Nov 1996

-0.50

6.50

31 Jul 1996

-0.50

7.00

14 Dec 1994

+1.00

7.50

24 Oct 1994

+1.00

6.50

17 Aug 1994

+0.75

5.50

30 Jul 1993

-0.50

4.75

23 Mar 1993

-0.50

5.25

8 Jul 1992

-0.75

5.75

6 May 1992

-1.00

6.50

8 Jan 1992

-1.00

7.50

6 Nov 1991

-1.00

8.50

3 Sep 1991

-1.00

9.50

16 May 1991

-1.00

10.50

4 Apr 1991

-0.50

11.50

18 Dec 1990

-1.00

12.00

15 Oct 1990

-1.00

13.00

2 Aug 1990

-1.00

14.00

4 Apr 1990

-1.00 to -1.50

15.00 to 15.50

15 Feb 1990

-0.50

16.50 to 17.00

23 Jan 1990

-0.50 to -1.00

17.00 to 17.50

RBA home loan rates

The cash rate forms a baseline for the rates that are paid by borrowers across the market. The rates that are actually paid on mortgages are determined in the competitive banking market. However, the RBA collects and reports some benchmark data on housing interest rates.

For home loans, the RBA collects data on Standard Variable Rate (SVR) and Basic Variable Rate (BVR) products. To differentiate between these loan types, the SVR style of loan includes a range of features over and above a BVR style of loan, for which the consumer pays a higher rate of interest features such as branch access, greater account accessibility, offset facilities and redraw facilities.

Chart 1 shows the historical path of the SVR home loan rate over 60 years from 1947 to 2007, and the BVR rate over the 13 years the RBA have differentially reported the data. This chart has been updated assuming that the recent rate rise is passed on in full.

Chart 1: RBA Home Loan Interest Rates

Chart 1: RBA Home Loan Interest Rates
Note: Where intra year variation occurs in the benchmark rate a mid point rate is used.
Source: S Barber, Interest Rates, Home Loans and Repayments Research Note No. 20, Parliamentary Library, Canberra, 2003 04 and RBA Bulletin Statistical Tables (various editions).

These data relate only to benchmark home loan interest rates. The RBA publishes a wider range of interest rate benchmarks for different sectors within the credit market. For example, they report on business lending, unsecured fixed loans and revolving credit facilities. Rate comparisons can be drawn from the RBA Bulletin Table Indicator Lending Rates .[12]

Market Home Loan Rates

While the RBA provides longer term benchmark rate data, it is also instructive to know about the actual range of rates available to consumers in the market place. There is a rich array of mortgage types now available in the Australian market place and these product types include:

  • Fixed rates of 1 10 years;
  • Honeymoon and introductory rate products;
  • Split loans;
  • Lines of Credit;
  • Longer term loans (up to 40 year terms);
  • No deposit finance (100 to 107 per cent of the property price);
  • Credit impaired loans (so called subprime or non conforming mortgages);
  • Low or no documentation loans;
  • Cocktail loans (combinations of personal and home loans for first time buyers);
  • Shared equity loans; and
  • Reverse mortgages.

Your Mortgage Magazine includes generic descriptions to help understand some of these product types, including an option to compare different interest rates.[13] This listing is expanded upon by the Australian Securities and Investment Commission.[14]

The key issue is that the interest rates published by the RBA may not necessarily reflect the range of rates available to Australian finance consumers.

To understand the different rates available in the market there are two independent sources, Infochoice and Cannex.[15] These entities publish interest rate and package details for a wide range of product types. By way of example, comparing between market and RBA rates as at 6 November 2007 (before the November rate raise), Infochoice were quoting a range of 6.99 8.72 per cent for an SVR loan against the RBA reported rate of 8.3 per cent and 6.69 8.02 per cent for a BVR loan against the average rate reported by the RBA of 7.75 per cent.

Assuming that the lenders offering these rates pass on the full November rate rise the range of home lending rates to consumers will likely be 7.24 8.97 per cent for standard mortgages and 6.94 8.27 per cent for basic mortgages.

Out of Cycle Rate Increases

As a consequence of the repricing of credit around the world, following on from the United States subprime crisis,[16] the Australian market has been experiencing interest rate increases outside of the RBA cash rate cycle.

The RBA cash rate target has traditionally set the benchmark for wholesale mortgage rates in Australia.[17] In effect, consumer mortgage rates are generated as a premium over the cash rate, reflecting the effective borrowing rate between the RBA and major banks plus a risk margin for lending funds to consumers.

More recently the mortgage market in Australia has matured with the emergence of non-bank lenders. These lenders typically access finance from sources other than retail deposit holders and use tools such as mortgage backed securities and securitisation, which effectively rely on selling large bundles of mortgages to investors. The evolution of this type of product market has brought the impact of short-term credit higher in relevance to the mortgage holder.

The effect of the short-term credit market is more keenly felt by some borrowers because the pricing of mortgage rates in this sector is affected not only by the RBA cash rate but also by the short-term credit market. Rate setting in this market is determined entirely by market forces with bond sellers (lenders) taking a price set by the market.

Chart 2 demonstrates the movement in short-term credit pricing in 2007 by plotting the daily short-term Bank Accepted Bill (BAB) rates. This chart shows that, for the early part of 2007, the RBA cash rate and the short-term rates were relatively similar, albeit with periodic fluctuations, until late in July. From July onward issues around defaults in the United States subprime mortgage market started to emerge, which began a repricing of credit around the world. The impact of the crisis on rates in the Australian short-term market can be seen in the upward trending of all three BAB rates from around August 2007.

Chart 2: Short-term market rates compared to the cash rate

Chart 2: Short-term market rates compared to the cash rate
Source: Reserve Bank of Australia, F01 Interest Rates and Yields Money Market Daily, http://www.rba.gov.au/Statistics/Bulletin/F01Dhist.xls, accessed 07 November 2007.

The influences on short-term credit markets are not considered in this note, because they are complex and significantly more complicated when considering global factors. However, to get a sense for why Australian mortgage rates might move outside of the RBA interest rate cycle, it is instructive to look at the margin received from short-term interest rates compared with the RBA cash rate. Intuitively non-bank lenders would have either to absorb higher funding costs, or increase the costs to consumers who borrow from them, when a higher margin emerges on the cost of funds they face in the short-term market.

Chart 3 presents the margin over the RBA cash rate in the short-term markets during 2007. Looking just at the 30 day rates, a spike emerged around 27 July 2007 moving the margin over the cash rate from around 0.1 per cent to 0.3 per cent after which the difference has spiked as far as 0.4 per cent at 6 November 2007.[18] The premium is higher for longer dated BABs, including 90 and 180 day bills.

The key point from these data is that the cost of funding to lenders without lower cost depositors as a source of funding has increased substantially during the latter part of 2007. It is also important to note that these margin shifts will affect borrowings in markets as diverse as home mortgages, small business overdrafts, leasing and personal or consumer credit markets (for example personal loans, credit cards and store cards).

Chart 3: Short-term market rate margins compared with the RBA cash rate

Chart 3: Short-term market rate margins compared with the RBA cash rate
Source: Reserve Bank of Australia, F01 Interest Rates and Yields Money Market Daily, http://www.rba.gov.au/Statistics/Bulletin/F01Dhist.xls, accessed 07 November 2007.

Various businesses have already adjusted rates to accommodate these changes.[19] Some major lenders have threatened shifting rates outside of the RBA cycle including NAB, Westpac and ANZ. Others have stated they see no reason to do so, including St George. The cost of funding has also claimed at least one Australian non-bank lender, with RAMS Home Loans effectively being unable to refinance its wholesale debts.[20]

The Prime Minister and Treasurer have warned major lenders against increasing rates further than the RBA changes on the basis that they do have access to strong balance sheets and lower cost retail deposits.[21] Market commentators believe there may be justification for increasing interest rates outside the RBA cycle due to the increased cost of funding in the wider market place.[22] Regardless of the effectiveness of these arguments it is unclear if the warnings will have an effect on the banks because the determination of interest rates to consumers is a commercial decision for the lending sector.

Loan Repayments

Changes in the cash rate affect a significant proportion of Australian mortgage payers because the majority of loans are variable rate, principal and interest term loans. The key elements of this loan type are:

  • Variable rate: meaning the interest rate varies with changes in the RBA cash rate;
  • Principal and Interest: meaning that the recurrent payment covers the interest accrued in a defined time period (week, fortnight, month) and an amount of principal; and
  • Term loan: meaning that the principal borrowed is paid back in full over a specific time period (for example, 25 years).

These variables feed into an amortisation formula to determine the required minimum repayments on a mortgage.[23]

This section provides some estimated repayments on a range of mortgage levels at a range of interest rates. The core assumption is that interest rate increases relate only to RBA induced changes.

Table 2 includes a repayment schedule at the RBA standard variable rate prevailing after all rate adjustments since the 2004 election (held 9 October 2004).

Table 2: Monthly loan repayments

Repayments at standard variable rate

Date

9-Oct-04

2-Mar-05

3-May-06

2-Aug-06

8-Nov-06

8-Aug-07

7-Nov-07

Increase

 

0.25%

0.25%

0.25%

0.25%

0.25%

0.25%

Rate

7.05%

7.30%

7.55%

7.80%

8.05%

8.30%

8.55%

$1,000

$7.10

$7.26

$7.42

$7.59

$7.75

$7.92

$8.09

$50,000

$355

$363

$371

$379

$388

$396

$404

$100,000

$710

$726

$742

$759

$775

$792

$809

$150,000

$1,065

$1,089

$1,113

$1,138

$1,163

$1,188

$1,213

$200,000

$1,420

$1,452

$1,484

$1,517

$1,550

$1,584

$1,617

$250,000

$1,775

$1,815

$1,856

$1,897

$1,938

$1,979

$2,021

$252,524

$1,793

$1,833

$1,874

$1,916

$1,957

$1,999

$2,042

$300,000

$2,130

$2,178

$2,227

$2,276

$2,325

$2,375

$2,426

$350,000

$2,485

$2,541

$2,598

$2,655

$2,713

$2,771

$2,830

$400,000

$2,840

$2,904

$2,969

$3,034

$3,101

$3,167

$3,234

$450,000

$3,195

$3,267

$3,340

$3,414

$3,488

$3,563

$3,639

$500,000

$3,550

$3,630

$3,711

$3,793

$3,876

$3,959

$4,043

Note: Loan repayments are based on a 25 year term loan, assuming monthly repayments and interest accruals. Dates correspond to RBA increment dates, with 9 October 2004 being the only exception as the date of the last federal election. The highlighted cells relate to the average loan size reported by the ABS on 7 November 2007[24]. Source: RBA (rates); ABS (average mortgage)[25]

Note that repayments on any loan size can be imputed from this table by using the $1,000 repayment information. For example, if you select a loan size of $325 000 then the repayments at 7 November 2007 would be 325 times $8.09, or $2 629 per month. In addition, to convert a monthly payment to a weekly payment, it is necessary first to multiply the monthly payment by 12 and then divide it by 52.

The periodic impact of rates rises, measuring the increased commitment as a result of a rate rise, is demonstrated in table 3. For the average mortgage, the November 2007 RBA rate rise has added $42 per month to payment commitments.

Table 3: Change in monthly loan payments from RBA adjustments

Impact of rate change compared to previous period

Date

9-Oct-04

2-Mar-05

3-May-06

2-Aug-06

8-Nov-06

8-Aug-07

7-Nov-07

Increase

 

0.25%

0.25%

0.25%

0.25%

0.25%

0.25%

Rate

7.05%

7.30%

7.55%

7.80%

8.05%

8.30%

8.55%

$1,000

na

$0.16

$0.16

$0.16

$0.17

$0.17

$0.17

$50,000

na

$8

$8

$8

$8

$8

$8

$100,000

na

$16

$16

$16

$17

$17

$17

$150,000

na

$24

$24

$25

$25

$25

$25

$200,000

na

$32

$32

$33

$33

$33

$34

$250,000

na

$40

$41

$41

$41

$42

$42

$252,524

na

$41

$41

$41

$42

$42

$42

$300,000

na

$48

$49

$49

$50

$50

$50

$350,000

na

$56

$57

$57

$58

$58

$59

$400,000

na

$64

$65

$65

$66

$67

$67

$450,000

na

$72

$73

$74

$74

$75

$76

$500,000

na

$80

$81

$82

$83

$83

$84

With the frequency of rate changes recently, it is also important to consider the cumulative impact (added up periodic impact) of RBA induced rate changes. Table 4 summarises these impacts since the 2004 federal election.

Table 4: Cumulative monthly impact on mortgage repayments from RBA adjustments

Cumulative impact of rate changes

Date

9-Oct-04

2-Mar-05

3-May-06

2-Aug-06

8-Nov-06

8-Aug-07

7-Nov-07

Increase

 

0.25%

0.25%

0.25%

0.25%

0.25%

0.25%

Rate

7.05%

7.30%

7.55%

7.80%

8.05%

8.30%

8.55%

$1,000

$0.00

$0.16

$0.32

$0.49

$0.65

$0.82

$0.99

$50,000

$0

$8

$16

$24

$33

$41

$49

$100,000

$0

$16

$32

$49

$65

$82

$99

$150,000

$0

$24

$48

$73

$98

$123

$148

$200,000

$0

$32

$65

$97

$130

$164

$197

$250,000

$0

$40

$81

$122

$163

$205

$247

$252,524

$0

$41

$82

$123

$165

$207

$249

$300,000

$0

$48

$97

$146

$195

$245

$296

$350,000

$0

$56

$113

$170

$228

$286

$345

$400,000

$0

$64

$129

$195

$261

$327

$395

$450,000

$0

$72

$145

$219

$293

$368

$444

$500,000

$0

$80

$161

$243

$326

$409

$493

In summary, someone taking out a loan at today s average mortgage level would be paying a total of $249 per month more than if the loan was taken out around the date of the 2004 federal election.

Other Housing and Property Related Data

This Background Note covers interest rate and mortgage payment issues only. It is a complement to a range of other research on the general area of mortgages and housing. This section provides some links to other research areas of interest.

Other research papers

Several informative sources have been published in the areas of housing payments and mortgage stress in Australia including:

Housing market and data

Inextricably linked to the issue of mortgages are issues such as property prices, housing affordability, average loan sizes, rental rates or policy matters relating to all of these issues. General statistics are available from:

Regulation of credit

With the increase in the cost of servicing mortgages there is some evidence emerging of additional mortgage defaults.[32] Accordingly, it is useful to review the regulatory environment for the finance sector. Some key areas of interest include:

 

[1]. More recently the cash rate target has been referred to as the Policy Interest Rate reflecting this rate being the primary monetary policy tool used by the RBA in interest rate markets. The terms are used interchangeably in this paper.

[2]. G Stevens, Monetary Policy , 7 November 2007 http://www.rba.gov.au/MediaReleases/2007/ mr_07_20.html,
accessed 7 November 2007.

[3]. RBA, Reserve Bank Board , http://www.rba.gov.au/AboutTheRBA/rba_board.html#members, accessed 3 August 2007.

[4]. RBA, About Monetary Policy , www.rba.gov.au/MonetaryPolicy/about_monetary_policy.html#the_ implementation_of_monetary_policy, accessed 3 August 2007.

[5]. The ABS inflation measure is a weighted average of a basket of household goods and services consumed across eight Australian capital cities. The basket measured includes goods and services with highly volatile price movements such as petrol, housing and fruit and vegetables.

[6]. RBA core inflation measures, the trimmed mean and weighted median, draw on the underlying quarterly price movements of the basket of goods measured by the ABS, but employ statistical techniques to exclude highly volatile items. In effect RBA core inflation measures provide a more balanced price path.

[7]. ABS Measures: ABS, 6401 Consumer Price Index June 2007, http://www.abs.gov.au/AUSSTATS/
abs@.nsf/ProductsbyCatalogue/938DA570A34A8EDACA2568A900139350?OpenDocument
,, and ABS, RBA Measures, http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts\6401.0Main%20Features
4Sep%202007?opendocument&tabname=Summary&prodno=6401.0&issue=Sep%202007&num=&view=
, accessed 7 November 2007.

[8]. RBA, Quarterly Statement on Monetary Policy , 12 November 2007, http://www.rba.gov.au/
PublicationsAndResearch/StatementsOnMonetaryPolicy/index.html
, accessed 12 November 2007.

[9]. Australian Associated Press, Sale of fixed rate home loans fall , Sydney Morning Herald, 3 August 2007, http://www.smh.com.au/news/Business/Sale-of-fixed-rate-home-loans-fall/2007/08/03/
1185648116068.html
, accessed 3 August 2007.

[10]. For example, if a housing rate was locked in at 6.5 per cent per annum and there were six RBA cash rate changes of 0.25 percentage points during the fixed rate period, the borrower would be looking at an interest rate at 1.5 percentage points per annum higher (8 per cent) at the expiry of the fixed term.

[11]. RBA, Cash Rate Target , http://www.rba.gov.au/Statistics/cashrate_target.html, accessed 7 November 2007.

[12]. RBA, Bulletin Statistical Tables: Indicator Lending Rate , http://www.rba.gov.au/Statistics/Bulletin
/F05hist.xls
, accessed 7 November 2007.

[13]. Your Mortgage Magazine, Loan Guide , http://www.yourmortgage.com.au/rates/standard_variable/, accessed 3 August 2007.

[14]. Australian Securities and Investment Commission, Types of Home Loans , http://www.fido.gov.au/fido/
fido.nsf/byheadline/Home+loans?openDocument
, accessed 8 August 2007.

[15]. See www.infochoice.com.au and www.cannex.com.au.

[16]. M Liedtke, A Primer on Subprime Mortgage Meltdown , Associated Press http://web.archive.org
/web/20070315175507/http://biz.yahoo.com/ap/070312/mortgage_meltdown_q_a.html?.v=1
, accessed 12 November 2007.

[17]. A wholesale rate is the effective rate paid by lenders for the cash they then re lend to consumers to purchase assets. Lenders take the wholesale rate and add a lending margin reflecting the risk of various clients. Typically the risk margin would be lower where the asset has a lower risk, such as housing compared to unsecured lending. .

[18]. The November margin reflects the market moving in anticipation of the cash rate change.

[19]. The Sheet, Rates rising everywhere bar big bank mortgages , Financial Standard, 15 October 2007, http://www.financialstandard.com.au/index.php?id=11094#Scene_1, accessed 7 November 2007.

[20]. Rams Home Loans, RAMS Home Loan Group Ltd (RHG) releases Explanatory Memorandum including the Independent Expert Report , 26 October 2007, http://www.rams.com.au/
files/Shareholder%20Centre/ASX%20Notices/071026%20RAMS%20releases%
20Independent%20Expert%20report%2026th%20October%20(3).pdf, accessed 7 November 2007.

[21]. ABC Radio, PM plays down bank rate rise chances , 26 October 2007; http://www.digradio.com.au/news/stories/2007/10/26/2071270ABC.htm, ABC Radio, Costello warns banks against rates rises , 23 October 2007, http://www.abc.net.au/news/stories/2007/10
/23/2068276.htm
, both accessed 7 November 2007.

[22]. ABC Radio, Banks have grounds to raise home loan rates: Deloitte , 2 November 2007, http://www.digradio.com.au/news/stories/2007/11/02/2080595.htm, accessed 7 November 2007.

[23]. Wikipedia, Amortization Schedule , http://en.wikipedia.org/wiki/Amortization_schedule, accessed 8 August 2007.

[24]. The average mortgage has changed since the last Background Note, increasing from $247 455 to $252 524. Repayments are updated to cover the most recent ABS data.

[25]. ABS, 5609 Housing Finance Australia, http://www.abs.gov.au/AUSSTATS/abs@.nsf/Productsby
Catalogue/05DBCE56402EC566CA25723D000F2999?OpenDocument
, accessed 7 November 2007.

[26]. S Barber, Interest Rates, Home Loans and Repayments Research Note No. 20, Parliamentary Library, Canberra, 2003 04. Available at: http://www.aph.gov.au/library/pubs/rn/2003-04/04rn20.htm

[27]. A Kryger, Mortgage Stress , Research Note No. 16, Parliamentary Library, Canberra, 2003 04. Available at: http://www.aph.gov.au/library/pubs/rn/2003-04/04rn16.htm

[28]. P Hicks, Tightening the mortgage belt , Research Note No. 21, Parliamentary Library, Canberra, 2003 04. Available at: http://www.aph.gov.au/library/pubs/rn/2003-04/04rn21.htm

[29]. A Kryger, Home loan affordability measurement and trends , Research Note No. 8, Parliamentary Library, Canberra, 2006 07. Available at: http://www.aph.gov.au/library/pubs/rn/
2006-07/07rn08.pdf

[30]. A Brischetto and T Rosewall, RBA, Loan Approvals, Repayments and Housing Credit Growth , RBA Bulletin July 2007, http://www.rba.gov.au/PublicationsAndResearch/Bulletin/bu_jul07/loan_app_repay_
house_cr_growth.html, accessed 7 August 2007.

[31]. RBA, Box B: Disaggregated Analysis of Owner-occupier Housing Debt and Assets , in RBA Financial Stability Review March 2007, http://www.rba.gov.au/PublicationsAndResearch/
FinancialStabilityReview/Mar2007/Html/dis_analysis_owner_occ_housing_debt_assets.html, accessed 7 August 2007.

[32]. G Lekakis, Mortgage defaults soar by 329pc , Herald Sun, 7 August 2007, http://www.news.com.au/
business/story/0,23636,22202830-462,00.html
, accessed 8 August 2007.

For copyright reasons some linked items are only available to members of Parliament.


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