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

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!