{"id":187914,"date":"2025-03-20T14:30:13","date_gmt":"2025-03-20T03:30:13","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=187914"},"modified":"2025-03-17T11:21:17","modified_gmt":"2025-03-17T00:21:17","slug":"the-silent-mortgage-squeezing-aussie-homeowners-and-its-not-interest-rates","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/the-silent-mortgage-squeezing-aussie-homeowners-and-its-not-interest-rates\/","title":{"rendered":"The Silent Mortgage Squeezing Aussie Homeowners\u2014And It\u2019s Not Interest Rates"},"content":{"rendered":"

Most homeowners keep a close eye on interest rates.<\/p>\n

After all, it\u2019s one of the biggest factors influencing mortgage repayments.<\/p>\n

But there\u2019s another rising cost that has been quietly creeping up\u2014one that you can\u2019t negotiate, refinance, or shop around for.<\/p>\n

Council rates.<\/p>\n

Over the past decade, council rates have surged by 39% nationally, outpacing inflation and squeezing homeowners even further.<\/p>\n

\"Council<\/p>\n

And in some cities, it\u2019s even worse: Canberra residents have seen their rates almost double, jumping a staggering 83%.<\/p>\n

Hobart isn\u2019t far behind at 46%, and Brisbane homeowners are now paying 43% more.<\/p>\n

For many, this has become a \"silent mortgage\", a growing cost that homeowners can\u2019t escape.<\/p>\n

Unlike electricity or insurance, you can\u2019t switch providers.<\/p>\n

You just get the bill, and you pay.<\/p>\n

Why are council rates rising so fast?<\/span><\/h2>\n

Council rates are meant to cover local services such as roads, waste collection, parks, and community infrastructure.<\/p>\n

However, they are also determined by property values and local government budgets.<\/p>\n

As home prices have climbed, so have rates.<\/p>\n

And because local councils set their own rates annually, homeowners are seeing their bills go up year after year, often without much explanation.<\/p>\n

According to Money.com.au, council rates were the fastest-rising housing cost in 2024, jumping 4.9%.<\/p>\n

This is higher than maintenance, utilities, or home insurance.<\/p>\n

The only thing rising faster?\u00a0Rent<\/strong> which is up 6.4%.<\/p>\n

Money.com.au<\/a>\u2019s Property Expert, Mansour Soltani, puts it bluntly:<\/p>\n

\n

\u201cCouncil rates have crept up faster than almost any other housing cost, acting like a \u2018silent mortgage\u2019 that homeowners can\u2019t exactly shop around for or negotiate.\u201d<\/p>\n<\/blockquote>\n