Mortgage Crisis: 40% of Australian Homeowners Under Pressure
Mortgage Crisis: 40% of Australian Homeowners Under Pressure
3
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.
A recent study has uncovered that an alarming number of Australian households are grappling with mortgage burdens, as over 1.4 million families find themselves in financial distress.
This amounts to more than 40% of current home loan holders, according to new data from Finder, a consumer finance comparison service.
The latest survey results, gathered consistently by Finder since 2019, revealed the most elevated levels of mortgage stress witnessed to date.
Compounding this concern, approximately 13% of surveyed households admitted to having missed one or more mortgage payments in the last six months.
The persistence of overleveraging among families is a significant component of this issue. As of August 2024, the typical owner-occupier loan has increased to $634,479, marking a 1.3% rise from the previous month. Over the past 12 months, the average mortgage figure has escalated by 9.3%, Australian Bureau of Statistics (ABS) data reveals.
Despite the economy showing signs of stagnation, the cash rate has remained unchanged since November 2023, keeping it at its highest point in 12 years. As Finder highlights, this has resulted in Australians allocating a disproportionate segment of their incomes solely to cover home loan repayments.
Insights from ANZ CoreLogic indicate an upward trend in income allocation towards mortgage servicing. Australians now use over 46% of their income for new mortgages, compared to 40% the previous year. The scenario is more severe in Sydney, where it takes in excess of 58% of an average household's income to manage mortgage payments.
Financial counselors commonly advise that households should not channel more than one-third of their income into mortgage payments.
Adding to the challenge is the diminishing savings buffers for Australians over the past decade. The ABS’s latest National Accounts report highlights a severe decline in the household savings ratio, plummeting to 0.6%-a substantial drop compared to a year-back in June 2022.
“While many mortgage holders have navigated rate hikes up until now, they are currently under acute financial pressure as their savings and emergency funds rapidly dwindle,” observed Finder’s Richard Whitten.
Whitten further emphasized, “For a growing number of Australians, housing-related costs are a primary stress factor, with numerous households struggling to stay afloat.”
The Australian motorcycle market experienced a slight downturn in 2025, with total sales decreasing by 1.3% compared to the previous year. According to the Federal Chamber of Automotive Industries (FCAI), 92,967 motorcycles and off-highway vehicles were sold throughout the year, reflecting ongoing economic pressures on discretionary spending. - read more
In a pivotal development for the motorcycle industry, KTM AG has successfully secured €600 million in funding to address its debt obligations, marking a significant milestone in the company's ongoing financial restructuring efforts. This funding ensures KTM's ability to continue operations and reinforces its position in the global motorcycle market. - read more
Stark Future, the Barcelona-based electric motorcycle manufacturer, has reported a remarkable 77% year-on-year revenue growth, achieving €115 million in revenue for the 2025 financial year. This significant increase underscores the growing demand for electric motorcycles and Stark Future's expanding market presence. - read more
In a significant development for the motorcycle industry, KTM AG has successfully secured €600 million in funding to meet its debt obligations, marking a pivotal step in the company's ongoing financial restructuring. This funding ensures KTM's ability to continue operations and reinforces its position in the global motorcycle market. - read more
When it comes to hitting the open road on a new motorcycle in Australia, securing the right loan can significantly impact your financial journey. Motorcycle loans are an essential tool that can help you purchase your dream machine. However, understanding how to navigate these loans can make a world of difference in both your purchase process and your long-term financial health. - read more
For motorcycle enthusiasts, owning and maintaining a bike is not just a hobby; it's a way of life. However, the financial aspects of this passion can sometimes be overwhelming. That's where budgeting comes into play. - read more
When it comes to purchasing a motorcycle, many riders opt for financing their purchase through a loan. While it allows you to enjoy the thrill of riding without hefty upfront costs, it's important to manage your monthly loan repayments effectively. By saving money on your motorcycle loan repayments, you can free up funds for other important expenses or accelerate the pay-off process. - read more
The importance of motorcycle maintenance cannot be understated, especially when faced with the unique and shifting weather conditions that span our vast continent. From the scorching heat of the Outback to the wet and windy coastline, traversing Australia on two wheels requires your machine to be as adaptable as you are. - read more
Start Here
Knowledgebase
Interest-Only Loan: A type of loan where the borrower only pays the interest on the principal balance for a set term.
