There’s no reason why Australian lenders couldn’t offer 30-year fixed-rate mortgages, as they do in the US. It could save borrowers thousands of dollars in interest a year.
Australia faces economic problems down the road if three big, structural reform areas — housing affordability, the tax mix, and decarbonisation — are not addressed.
The government has released the latest Tax Office breakdown of the numbers coming off the program, amid concerns its end in late March will see a rise in unemployment.
Peter Martin, Crawford School of Public Policy, Australian National University
Philip Lowe is on the cusp of permanently changing Australia. He stands a good chance of being one of the best governors since the first, who ushered in the goal of full employment.
The amount of Australians in mortgage stress is the reason why wages growth and the labour market are such a problem - and a big reason for the RBA not to raise rates any time soon.
Building negotiating power is crucial for anyone looking to ask for a pay rise. But for those who can’t, perhaps it’s the employers’ responsibility to ensure fair compensation.