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

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

Share this news item:

Finance News

Clear

Increasing Number of Qualified Financial Advisers Opt Out of Practice 11 Jul 2025: Paige Estritori Recent analysis from WealthData indicates a growing trend among financial advisers in Australia, where a significant portion of those who have successfully passed the financial adviser exam are opting not to practice. As of now, 5,096 individuals, representing 33.31% of active advisers, have chosen not to proceed into practice after passing the exam—up from 28.36% a year prior. - read more

Melbourne's Housing Market: A Prime Opportunity For Buyers 11 Jul 2025: Paige Estritori The Reserve Bank of Australia (RBA) recently surprised many by maintaining the interest rate at 3.85%, against expectations of a cut. This decision is seen as a measure to continue moderating inflation, but it simultaneously delays potential spikes in the housing market, providing a favorable window for prospective homebuyers. In particular, Melbourne's current market presents significant value, offering a promising opportunity for those looking to enter the property market. - read more

Improving EOFY Planning: The Call for ATO Portal Access for Advisers 09 Jul 2025: Paige Estritori In a recent discussion, James O'Reilly, Director and Financial Planner at Northeast Wealth, underscored the benefits that could come from granting financial advisers access to the Australian Taxation Office (ATO) portal. Speaking on The ifa Show, O'Reilly proposed that this access would significantly simplify the services financial advisers provide to clients, particularly at tax time and the end of the financial year (EOFY). - read more