Knowledge Tree
Relations (1)
cross_type 2.00 — strongly supporting 3 facts
The relationship is established by historical data showing the significant growth and economic impact of mortgage debt within Australia, as evidenced by the rise in debt-to-GDP ratios [1], the shift in mortgage finance usage [2], and the role of debt in inflating house prices [3].
Facts (3)
Sources
Juggling to stay afloat: Debt and health under financialization discovery.researcher.life 3 facts
measurementThe primary role of mortgage debt in Australia shifted from financing new construction to purchasing existing dwellings; in 1985, less than 25 percent of new mortgage finance was for new dwellings, and by 2000, this figure had fallen below 10 percent.
measurementAustralian household debt increased from 30 per cent to 99 per cent of GDP, and mortgage debt increased from 20 per cent to 85 per cent of GDP, between 1990 and 2008.
measurementApproximately 85 percent of the additional $985 billion of mortgage debt accumulated in Australia since 1986 was used to inflate house prices rather than to finance the construction of new homes.