Housing Loan Interest Rates

The Hon. RICK COLLESS [6.58 p.m.]: I advise members of this Chamber of some of the history of housing loan interest rates, which they need to keep in mind. I bought my first home in 1976 and paid $25,000 for it. I borrowed $22,000 and was earning about $7,000 a year. At that time the interest rate was 9.8 per cent. Over the next 10 years or so that interest rate blew out to 17 per cent.

The Hon. Ian West: It was pegged at 11 per cent.

The Hon. RICK COLLESS: The interest rate went to 17 per cent; it was not pegged. Housing loan interest rates rose to 17 per cent. At the time that John Howard was elected Prime Minister the interest rate was about 11 per cent and it continued to decline to the lowest level this country has experienced since 1970. There was a little spike in January 2001 when the interest rate went up to about 8 per cent, and it continued to decline. There is another little spike now. My point is that the interest rate has never gone above what it was when John Howard was elected. It is still lower than it ever was under a Labor Government.

[Time for debate expired.]

Question—That this House do now adjourn—put and resolved in the affirmative.

Motion agreed to.

1