What households owe, mostly mortgages. Australia's household debt is among the highest in the world relative to income.
Measured as a ratio to household disposable income or to GDP. Australia's ratio is around 180% of disposable income, most of it variable-rate mortgages.
Why it matters
High debt makes household spending very sensitive to interest rates: each rate rise takes more out of budgets, which is why RBA moves reach the economy quickly. It also means a house price fall would hit spending through wealth effects.
