Australia hits peak mortgage debt

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By Leith van Onselen

The Reserve Bank of Australia (RBA) has released its household debt ratio data for the September quarter, which reveals that outstanding mortgage debt has hit the highest ever level when compared against GDP and household incomes.

As shown in the next chart, the ratio of housing debt to GDP was a record 87.7% as at September 2014, eclipsing the previous record high 86.9% as at March 2010 (see next chart).

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.