Real estate commentator Tom Panos argues that despite sky-high interest rates of 17.5 per cent in the early 1990s, Australian families today face even greater financial hardship. The crucial difference is not the interest rate itself, but rather that modern mortgages now consume far greater proportion of household income, leaving families with no financial breathing room whilst simultaneously managing soaring costs for essentials like groceries, petrol and electricity.

Panos illustrates this disparity with concrete examples: in 1990, a Sydney median house price of £187,000 with a 20 per cent deposit required a £150,000 mortgage; at 17 per cent interest, annual repayments were roughly £25,000. Today, the £1.7 million median house price requires a £1.36 million mortgage; at 6.4 per cent interest, annual repayments total approximately £87,000. Australian households currently carry debt equivalent to 178 per cent of their annual disposable income—among the highest levels since records began in 1977. The Reserve Bank has raised rates four times this year to combat inflation, signalling rates may remain elevated for an extended period.