Australia’s mortgage burden is now above 1989 levels – when interest rates were 17%

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

Australia’s national mortgage burden is heavier now than it was when lending rates reached 17% at the end of the 1980s, new analysis reveals.

Terry Rawnsley, an urban economist at KPMG, said his research was in part a “myth-busting” exercise aimed at rebutting oft-repeated claims that previous generations had it harder when it came to buying and paying off a home.