Swan misleads on interest rates again

08/02/12

Wayne Swan again misled the Australian people about how much Australian families are paying for their mortgage under this government.

Wayne Swan claimed this morning:

If you’ve got a $300,000 mortgage, you’re now paying $3,000 a year less than you were paying under the Liberal Party.

Wayne Swan is not only misleading the Australian people but he is deeply out of touch with cost of living pressures faced by Australian families.

On average, effective interest rates paid by home buyers and small businesses were lower under the Coalition from 1996 –2007 than they have been under Labor since the 2007 election.

Under the Coalition, the average standard variable mortgage rate was 24 basis points lower than Labor.

For Wayne Swan’s typical $300,000 mortgage this difference would represent a saving of $720 a year, or $60 a month.

Under the Coalition, the average small business unsecured overdraft rate was 134 basis points lower than Labor.

For a typical small business unsecured overdraft loan of $200,000 this difference would represent a saving of $2,680 a year, or $223 a month.

Wayne Swan must be upfront with the Australian people that effective interest rates, on average, were lower under the Coalition.