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
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Wisr's New Secured Motorbike Loans: A Game-Changer for Australian Riders

09 Jan 2026: Paige Estritori

Australian fintech lender Wisr has expanded its product range by introducing secured motorbike loans, aiming to cater to the growing demand for flexible vehicle financing options among Australian riders. This strategic move allows customers to use their motorbikes as collateral, potentially accessing more favourable interest rates compared to unsecured loans. - read more

MotorCycle Holdings Achieves Record-Breaking Revenue in FY2025

09 Jan 2026: Paige Estritori

MotorCycle Holdings Limited, Australia's largest motorcycle retailer, has reported a record sales revenue of $650 million for the financial year 2025, marking an 11.6% increase from the previous year. This achievement underscores the company's strategic initiatives and resilience in a challenging market. - read more

KTM's €600 Million Lifeline: A New Chapter for the Austrian Motorcycle Giant

09 Jan 2026: Paige Estritori

Austrian motorcycle manufacturer KTM AG has successfully secured €600 million in funding, enabling the company to fulfill its debt obligations and complete its restructuring plan. This development is particularly significant for Australian riders and dealers who rely on KTM's presence in the market. - read more

Click for more Finance News