For faster navigation, this Iframe is preloading the Wikiwand page for Mortgage belt.

Mortgage belt

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: "Mortgage belt" – news · newspapers · books · scholar · JSTOR (January 2017) (Learn how and when to remove this template message)

The Mortgage belt is a term used in Australian politics to signify residential suburbs which have a high concentration of families mortgaging their homes.

Often the belt covers areas where homes could be considered more affordable yet the cost of servicing the mortgage loan represents a high proportion of the families' available income. Changes to cost of servicing a mortgage, seen through interest rate fluctuations, can trigger widespread satisfaction or dissatisfaction towards the government of the day.

History

In the 2004 federal election, the media played up the narrative the mortgage belt voted highly in favour of the Coalition, in fear that economic management under the Australian Labor Party could increase interest rates. The Coalition ran a fear campaign on the issue and this became one of the keystones which helped it win a successive fourth term. However, it is generally agreed that governments have little control over interest rates, which are set by the Reserve Bank of Australia. There is little evidence in the political science literature to support the media's narrative for the mortgage belt making negative economic assessments of the Labor Party instead leader effects had a far larger impact on vote choice with a significant effect for negative assessments of the Labor leader, Mark Latham, on the defection of Labor partisans to the Coalition.[1]

In March 2005, interest rates rose by a quarter of a percent.

Mortgage belt areas played a significant role in the 2007 election where Labor won back many mortgage belt Liberal strongholds won in the 1996 election due to general disaffection with the incumbent government as well as high interest rates.[according to whom?]

International use

The term has also seen use in New Zealand by political and economic commentators.[2][3][4][5]

See also

References

  1. ^ McAllister, Ian; Bean, Clive (2006-12-01). "Leaders, the Economy or Iraq? Explaining Voting in the 2004 Australian Election*". Australian Journal of Politics & History. 52 (4): 604–620. doi:10.1111/j.1467-8497.2006.00435a.x. ISSN 1467-8497.
  2. ^ Ruth Laugesen (2007-08-10). "Mortgage stress on the rise". Sunday Star Times.
  3. ^ "The maturing of a 'rock star' economy". ASB Economics. 2014-07-29.
  4. ^ "When rising tides don't lift all boats: Household Income Growth since 2008" (PDF). Westpac Institutional Bank. 2013-02-20.
  5. ^ Brian Fallow (2013-06-01). "Mortgage debt rising fast". New Zealand Herald.
{{bottomLinkPreText}} {{bottomLinkText}}
Mortgage belt
Listen to this article

This browser is not supported by Wikiwand :(
Wikiwand requires a browser with modern capabilities in order to provide you with the best reading experience.
Please download and use one of the following browsers:

This article was just edited, click to reload
This article has been deleted on Wikipedia (Why?)

Back to homepage

Please click Add in the dialog above
Please click Allow in the top-left corner,
then click Install Now in the dialog
Please click Open in the download dialog,
then click Install
Please click the "Downloads" icon in the Safari toolbar, open the first download in the list,
then click Install
{{::$root.activation.text}}

Install Wikiwand

Install on Chrome Install on Firefox
Don't forget to rate us

Tell your friends about Wikiwand!

Gmail Facebook Twitter Link

Enjoying Wikiwand?

Tell your friends and spread the love:
Share on Gmail Share on Facebook Share on Twitter Share on Buffer

Our magic isn't perfect

You can help our automatic cover photo selection by reporting an unsuitable photo.

This photo is visually disturbing This photo is not a good choice

Thank you for helping!


Your input will affect cover photo selection, along with input from other users.

X

Get ready for Wikiwand 2.0 ๐ŸŽ‰! the new version arrives on September 1st! Don't want to wait?