It's a similar story in Victoria, where in the mid-1990s more than 45 per cent of people were mortgage-free, but now that figure has fallen to just 31 per cent. Victorians are among the most exposed to changing interest rates, with more than 37 per cent of people holding a mortgage. Two decades ago less than 30 per cent held a housing debt with their bank. Over the same period, the median house price in Melbourne has soared from $126,131 to $806,000. The Northern Territory has the smallest proportion of people who own their home outright, at just 17 per cent. Among the states, just 27 per cent of residents in Queensland and Western Australia enjoy life without a mortgage or rental payments.

Despite prices falling for the past four years, the median outstanding mortgage in WA is $315,000. The median mortgage in Victoria is $260,000 while it is $265,000 in NSW. National Seniors chief advocate Ian Henschke said the figures highlighted a hidden problem that was confronting more retirees or those looking to retire. Not only were more Australians holding debt for longer, the single largest age cohort on Newstart were those aged between 55 and 64, suggesting they were facing severe financial stress. "There are more and more people who are getting into retirement with a mortgage over their heads," he said.

"The number of people on Newstart aged between 55 and 64 is increasing sharply. These are people having to access their super to try and get on top of their mortgage because they don't want to retire with such large debts." The eventual financial benefits from getting rid of a mortgage is clear from the data. The average weekly housing costs for all Australian households in 2017-18 was $311. For those with a mortgage, the cost was $484 while for renters it was $366. People who owned their own home shelled out just $53 a week. The hardest hit by the shift into housing debt have been low-income households. In the mid-1990s, the poorest fifth of NSW residents spent less than 21 per cent of their weekly income on housing.

Loading Now a third of their income is needed to cover housing costs compared to less than 10 per cent for the richest fifth of the population. The poorest households in Victoria have not endured such a sharp increase in housing costs but they are still paying out a quarter of their income on rents or mortgages. Twenty years ago, housing costs accounted for 20 per cent of their weekly income. NAB senior economist Kieran Davies, in a research note, said debt was now being carried by older people and at a much larger level than in the past. "Gearing has increased sharply among older Australians, broadly reflecting the changing pattern of home ownership," he said.