Mortgage belt
Encyclopedia
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.
In the 2004 federal election, the mortgage belt voted highly in favour of the Coalition
party, in fear that economic management under the Australian Labor Party
could increase interest rates. The Coalition ran a successful 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
.
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.
Politics of Australia
The Politics of Australia take place within the framework of a parliamentary democracy, with electoral procedures appropriate to a two-party system. Australia is governed as a federation and as a constitutional monarchy, with an adversarial legislature based upon the Westminster system...
to signify residential suburbs which have a high concentration of families mortgaging
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
their homes.
Often the belt covers areas where homes could be considered more affordable yet the cost of servicing the mortgage loan
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the 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.
In the 2004 federal election, the mortgage belt voted highly in favour of the Coalition
Coalition (Australia)
The Coalition in Australian politics refers to a group of centre-right parties that has existed in the form of a coalition agreement since 1922...
party, in fear that economic management under the Australian Labor Party
Australian Labor Party
The Australian Labor Party is an Australian political party. It has been the governing party of the Commonwealth of Australia since the 2007 federal election. Julia Gillard is the party's federal parliamentary leader and Prime Minister of Australia...
could increase interest rates. The Coalition ran a successful 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
Reserve Bank of Australia
The Reserve Bank of Australia came into being on 14 January 1960 as Australia's central bank and banknote issuing authority, when the Reserve Bank Act 1959 removed the central banking functions from the Commonwealth Bank to it....
.
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.