PHOTO: Reserve Bank
The level of household debt to income has exceeded 190 per cent for the first time, figures released by the Reserve Bank on Friday show.
And the level of housing debt to income has also jumped to an all-time high more than 140 per cent.
The RBA data shows Australians have nearly twice as much debt as income; the ratio rose to 191.1 per cent in the June quarter, up from 189.4 in March. The level of housing debt to income also increased to 140.4 per cent, up from 139.8.
The figures reflected the property price decline in the June quarter and do not capture the property price recovery in the last three months.
A jump in home lending in July of 5.1 per cent – its biggest monthly gain in four years was followed by a surge in prices in the two biggest property markets over August. Property values have increased 1.9 per cent in Sydney in the last three months.
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