the coalition's cheap rates!!!!!!!!!, page-6

Sorry sp, just needed to get some confirmation from the tax office.

Ok, let's look at the net figures.

Year: 2005

Average home loan: $210000
Average weekly earnings (net): $729
Interest rate (before the rate rise): 7.07%
Loan term: 25 years

Debt servicing ratio: 47%

For an interest rate of 9.99% (you know, still cheap).

Debt servicing ratio: 60%.

Year: 1989

Average home loan: $45000
Average weekly earnings (net): $387
Interest rate: 18%
Loan term: 25 years

Debt servicing ratio: 40%

So at the end of the day, tax breaks really have not helped at all.

Reason: The mountainous debt Australians are in!

As I keep saying....BORROW, BORROW, BORROW MORE!