cash rate up 25 points, page-86

Ok Hobo using your average FHB loan of $280k over 30 years at 10% annual payments would be $29702

Also you stated average full time earnings was $62,270pa in 2009.
Tax = $12,681.00

Therefore free income after tax and loan payment = $19887

Living Costs:
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Shopping costs assume $100 p/w = $5200
Fuel for car assume $50 p/w = $2600
Car insurance/other costs = $2000
Council Rates say $1500 p/a
Insurance say $1000 p/a
Electricity/gas say $500 per quarter = $2000 p/a
Phone/Internet = $1800
Water/Sewerage say $150 per quarter = $600 p/a

TOTAL: $16700

So even based on these rough figures we still have $3187 left over for other expenses. A family could live quite comfortably (not lavishly) on these figures which could even be pruned back more if necessary. After all phone/internet is not an essential or alternatively you can get Naked DSL/VOIP packages for $60 per month. Also if you monitor your electricity/gas usage then your quarterly bill will be quite a bit lower than $500 per month. Lastly depending on where you work public transport or even car pooling could cut back your transport costs.

Therefore the average wage earner even with the average mortgage can still live quite comfortably even at 10% interest rates.