Palmer pledges 3% mortgage rate cap

Australian mining magnate and United Australia Party chairman Clive Palmer has declared his party’s economic policy for housing, revealing its intention to introduce a 3 per cent cap on home loan rates for the next five years. 

Speaking at the National Press Club on Thursday (7 April), Mr Palmer said that Australia currently “faces a crisis”, suggesting that 40 per cent of Australians are suffering from mortgage stress.

Mr Palmer also claimed that when the mortgage rate rises to 4 per cent, “60 per cent of our mortgages fail in this country”, and that when mortgages rise to 6 per cent, “80 per cent of our mortgages fail”. 

“Australia faces a crisis with around 80 per cent of the holders of mortgage in this country likely to lose their homes and Australia faces an unprecedented national emergency,” Mr Palmer stated.  

“The government of this country must move to protect and defend all Australians from that outcome regardless of international pressure.”

The United Australia Party’s plan is that under former Coalition MP Craig Kelly’s leadership, it would “reassert the government control it has under the Constitution” and set a 3 per cent per annum maximum on interest rates for home loans, Mr Palmer explained.

“Just last week, the Commonwealth Bank predicted there’ll be four home loan increases this year,” Mr Palmer said. 

“The chief of the IMF has confirmed it’s inevitable that rates will rise.

“And after the election, we will face runaway inflation, which will lead to higher interest rates, which will devastate Australian families and businesses and destroy the independence and freedom of the nation.”

Mr Palmer then noted that Australia has seen its debt exceed a trillion dollars over the pandemic, and that, based on the projected interest rates, he estimates it will take “180 years to get this nation back to where it was when John Howard left office”. 

“We don’t have 180 years to act, so Morrison’s plan won’t save Australians from defaulting on their loans,” Mr Palmer said. 

“That won’t stop Australian homes and assets from being sold to foreign interests who would be the only buyers with money in the market, as Australians lose their homes because of increased home loan rates.”

Mr Palmer then outlined his plan for housing in Australia if UAP were to secure office in the upcoming federal election – a 3 per cent cap on home loans for the next five years. However, details on how this would be achieved have not been released.

[Related: RBA bides time as inflation accelerates]