Toll of mortgage stress revealed, ahead of Labor’s Senate showdown on housing

Mortgage stress in NSW and Victoria has increased by more than 80 per cent in the past year, as the Albanese government pressures the Senate to back legislation that will increase housing supply.

Housing Minister Clare O'Neil. Picture: NewsWire/Martin Ollman

Mortgage stress in NSW and Victoria has increased by more than 80 per cent in the past year, new figures reveal, as the Albanese government unveils funding for nearly 14,000 new homes ahead of a parliamentary sitting week to be dominated by housing.

As Labor unveils the first round of funding through the Housing Australia Future Fund, new data from the Reserve Bank showed 0.67 per cent of Victorians and 0.57 per cent of NSW mortgage holders were 90 or more days behind in their repayments.

The figures, provided to The Australian by Liberal senator Dean Smith, showed there was also evidence of mortgage stress in Tasmania, with a 72 per cent ­increase in mortgage holders ­falling into arrears, a 64 per cent increase in South Australia, a 62 per cent jump in Queensland and a 44 per cent rise in Western ­Australia.

While the figures support RBA governor Michele Bullock’s analysis that most borrowers were absorbing a series of rate hikes, Senator Smith said the figures reflected a “bad situation … getting even worse on Labor’s watch” as more Australians were forced to sell their homes.

“There are thousands of homeowners who cannot keep up with higher mortgage repayments on top of other cost-of-living expenses,” he said.

Ahead of a sitting week that will see two of Labor’s most ­important housing initiatives – Help to Buy and Build to Rent – be debated in the Senate, opposition Senate leader Simon Birmingham has warned that the government will be looking to compromise with the Greens and the crossbench.

Mortgage stress in NSW and Victoria has increased by more than 80 per cent. Picture: Supplied

Legislation outlining the Future Made in Australia and establishing the new Environmental Protection Australia agency will also be debated in the parliament.

“Labor should rule out an avalanche of billion-dollar, economy-crushing deals with the Greens this week,” he said.

“There’s a real risk that this week could give Australia a taste of just how destructive a future Labor-Greens government could be in the event of a hung ­parliament.”

Greens housing spokesman Max Chandler-Mather, however, criticised the government for being unwilling to come to the negotiation table, as the party continues to advocate for a rent freeze, investment in public housing and an end to negative gearing.

Greens housing spokesman Max Chandler-Mather. Picture: NewsWire/John Gass

“Labor is not negotiating, they haven’t made a single counter­offer, and frankly we have lost ­patience with a property investor Prime Minister who would ­rather reject good ideas just so he can pursue his personal dislike of the Greens instead of helping renters and first-home buyers,” he said.

On Monday, Anthony Albanese will unveil the first round of funding allocation under the Housing Australia Future Fund, which will deliver more than 13,700 social and affordable homes across the nation.

“I grew up in social housing – I know how important a roof over your head is, and the opportunities that it creates,” the Prime Minister said.

Housing Minister Clare O’Neil said the Albanese government had delivered more social and affordable housing in its first term in government than the Coalition did in nine years.

“We want to reduce the stress of housing for Australians – the long waits on housing lists, the long queues for rentals, the out-of-reach deposit for first-home ­buyers – we’ll reduce these issues if we build more houses, and that’s what these projects do,” Ms O’Neil said.