Who pays the interest? Pete Wargent
Pete WargentDecember 17, 2020
When it comes to the question of who pays the mortgage interest, the answer is that New South Wales and Victoria do: well over half of the national interest payable in fact.
While this might seem surprising, in fact the share of interest paid by the largest two states has declined over the past two decades.
The reason for this has been the expansion of both the population and mortgage sizes in Queensland (its share of the mortgage interest pie increasing from 15%to 19%) and Western Australia (its share increasing from 9 to 13%).
The changes elsewhere have been negligible when viewed from the national level.
Despite the Australian population having increased by well over 1 million persons (or about 4.7%) over the past three years, total interest payable has declined by nearly 22% thanks to the slashing of interest rates.
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.
His latest book is Four Green Houses and a Red Hotel.
Pete Wargent
Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.