Mortgage debt is by far the largest component of debt in Australia today -- government debt, which is the focus of political debate, is trivial by comparison (a quick caveat though: finance sector debt may be larger again than mortgage debt, if this claim, sourced from Morgan Stanley, is accurate, since it shows Australia’s aggregate private debt ratio as almost equal to that of America).

The household debt to income ratio may have topped out now, after growing five-fold in the last two decades. Figure 2 shows the ratio of household debt to disposable income, which peaked at 149% of disposable income back in late 2008. Despite the enticement into debt given by the first-home vendor's boost, aggregate household debt never exceeded this pre-boost peak as a percentage of disposable income, since the fall in personal debt outweighed the rise in mortgage debt.