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.

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.”

Published:Monday, 9th Sep 2024
Source: Paige Estritori

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

Share this news item:

Finance News

Clear

Harley-Davidson Explores Sale of Financing Unit Stake

18 Dec 2025: Paige Estritori

Harley-Davidson, the iconic American motorcycle manufacturer, is reportedly in discussions to sell a stake in its financing unit, Harley-Davidson Financial Services (HDFS). This move could have significant implications for motorcycle financing options available to consumers. - read more

Peter Stevens Motorcycles Faces Financial Crisis

18 Dec 2025: Paige Estritori

Peter Stevens Motorcycles, a cornerstone of Australia's motorcycle retail industry since 1970, has entered voluntary administration, revealing debts exceeding $65.9 million. This development casts uncertainty over the future of the company's 400 employees and its extensive customer base. - read more

ASIC's Findings on Motor Vehicle Finance: A Call for Reform

10 Dec 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of the motor vehicle finance sector, uncovering significant issues that have raised concerns about consumer protection and industry practices. - read more

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

10 Dec 2025: Paige Estritori

In a significant development for the motorcycle industry, KTM AG has successfully secured €600 million in funding, enabling the company to fulfill its restructuring plan and stabilize its financial position. - read more

Click for more Finance News