“Finally, it is important to appreciate that interest rates are only one of the variables that determines whether a mortgage holder is considered ‘at risk’ – the largest impact on whether a borrower falls into the ‘at risk’ category is related to household income – which is directly related to employment. The employment market has been strong over the last three years, and this has provided support to household incomes which have helped to moderate levels of mortgage stress over the last year.”
Meanwhile, separate research from Finder’s RBA Survey indicates that over a third of homeowners were experiencing mortgage stress in September, with many still struggling despite recent rate relief.
“While relief is starting to filter through, 35% of homeowners are still struggling to pay their mortgage in September,” said Graham Cooke, head of consumer research at Finder.
“Even with another cut expected before Christmas, you don’t need to wait to get a better deal. If you’re currently paying more than 5.5% for a variable rate, you’re probably paying too much.”
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