IDEAS home Printed from https://ideas.repec.org/a/taf/apfiec/v22y2012i21p1787-1797.html
   My bibliography  Save this article

The impact of the GST on mortgage yield spreads of Australian banks

Author

Listed:
  • Allen Huang
  • Benjamin Liu

Abstract

Australia has experienced significant rises in mortgage costs and sharp declines in housing affordability in the past decade, which corresponds with the introduction of the Goods and Services Tax (GST) in the nation in July 2000. To what extent the GST has impacted mortgage costs is our research question. Using the mortgage loan data of all banks operating in Australia, this study investigates and measures the changes of mortgage yield spreads in the pre- and post-GST periods. Results show the bank lenders significantly increased their mortgage charges in the post-GST periods and the rise in mortgage charges was not a one-off impact. The findings have important financial, economic and policy implications.

Suggested Citation

  • Allen Huang & Benjamin Liu, 2012. "The impact of the GST on mortgage yield spreads of Australian banks," Applied Financial Economics, Taylor & Francis Journals, vol. 22(21), pages 1787-1797, November.
    • Handle: RePEc:taf:apfiec:v:22:y:2012:i:21:p:1787-1797
    DOI: 10.1080/09603107.2012.678980
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09603107.2012.678980
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09603107.2012.678980?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:22:y:2012:i:21:p:1787-1797. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAFE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.