Struggling with Mortgage Payments? You are Not Alone: 1.2 Million Aussie Households Affected

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The findings show that 23.9% of Australian mortgage holders, or 1.1 million households, are already categorized as "At Risk," meaning their mortgage payments exceed a certain percentage of their income. This is the highest level of mortgage stress since July 2013.

If the Reserve Bank goes ahead with the 0.25% rate hikes, the study predicts that mortgage stress will affect 1.2 million households, or 26.3% of mortgage holders. Roy Morgan cautions that this is a conservative estimate and does not account for other factors that may affect the ability of households to pay their mortgages, such as job loss.

Since April 2022, average variable mortgage repayments have increased by 41%, and a further 0.5% rate hike could push them up by 48%. This would result in an additional $1,071 per month for a borrower with a $500,000 variable mortgage.

Another factor adding to the stress on mortgage holders is the expiration of rock-bottom fixed mortgage rates that were offered during the pandemic. Approximately 40% of mortgages originated during this period had rates of around 2.25%, and two-thirds of these will reset to higher rates by the end of 2023, putting even more pressure on already stressed household budgets.

Published:Monday, 30th Jan 2023
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

Why personal loan comparison matters for July borrowers

03 Jul 2026: Paige Estritori

Australia’s personal loan market has entered July with a clear message for households and small business owners: the advertised rate is only the starting point. Recent rate tables show a wide gap between the most competitive personal loan offers and the upper end of the market, particularly for unsecured borrowing. That spread matters because two applicants seeking the same loan amount can face very different total repayment outcomes depending on credit profile, product type, fees and loan term. - read more

Judo Bank’s Share Slump Puts SME Lending Risk in Focus

26 Jun 2026: Paige Estritori

Judo Bank’s sharp share price fall on 25 June has put a spotlight on the pressure building in parts of Australia’s small business lending market. The ASX-listed specialist lender, known for focusing on small and medium-sized enterprises, saw its shares drop heavily after it disclosed a small group of deteriorating business loans and lifted its expected cost of managing credit risk. - read more

RBA Holds Rates: A Timely Checkpoint for Borrowers

19 Jun 2026: Paige Estritori

The Reserve Bank of Australia’s June decision to keep the cash rate target unchanged at 4.35 per cent marks an important pause after three consecutive rate increases earlier in 2026. For households, sole traders and small to medium-sized business owners, the hold does not mean borrowing has suddenly become cheaper. It does, however, create a valuable moment to reassess existing debt, planned applications and overall cash flow before the next policy move. - read more

Click for more Finance News