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Mortgage Stress In Australia And Your Options

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As of July 2023, an estimated 1.3 million (30.5%) Australian mortgage holders are considered to be "at risk" of mortgage stress. This means that they are spending more than 30% of their pre-tax income on their mortgage repayments.

The number of people experiencing mortgage stress has been increasing steadily since the Reserve Bank of Australia began raising interest rates in 2022. In April 2023, the number of people at risk was 1.19 million. In January 2023, it was 1.09 million. And in July 2022, it was 942,000.

The states with the highest number of people experiencing mortgage stress are New South Wales (542,000 or 32.1%), Victoria (428,000 or 31.3%), and Queensland (340,000 or 30.9%). The states with the lowest number of people experiencing mortgage stress are Tasmania (154,000 or 23.4%), South Australia (210,000 or 25.4%), and the Northern Territory (222,000 or 26.1%).

Mortgage stress can have a significant impact on people's financial and emotional well-being. It can lead to financial hardship, difficulty paying bills, and stress-related health problems. If you are experiencing mortgage stress, there are a few things you can do to get help, including:

  • Sign up an independent mediator like Craggle to compare options for a better interest rate – including a renegotiated interest rate with your current provider or refinancing to a new provider. sigh up today and see save button.png
  • Talk to a financial counsellor or advisor.
  • Apply for financial assistance from the government.
  • Talk to your bank directly.

It is important to remember that you are not alone. There are many people who are experiencing mortgage stress, and there is help available.

Written By

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The Craggle Team

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