The latest findings from Roy Morgan Research Institute (https://www.roymorgan.com/) reveal that ‘mortgage stress’ has hit a record high since April 2012, with almost a quarter of mortgage holders (24.9%) now ‘At Risk’. This means that an estimated 1.19 million Australians are struggling to meet their mortgage payments, as they face two interest rate hikes of 0.25% in the three months to January 2023.
This is the highest proportion of mortgage holders facing ‘At Risk’ status in over a decade, since June 2012, and is significantly above the long-term average of 22.8% going back to early 2007. The number of Australians considered ‘At Risk’ has surged by 486,000 over the last year, as the Reserve Bank of Australia (RBA) raised interest rates for ten consecutive monthly meetings, taking official rates to 3.60% in February 2023, the highest since October 2012.
Despite this worrying trend, the number of Australians facing mortgage stress is still lower than during the Global Financial Crisis in 2009, when 1.45 million mortgage holders (35.6%) were struggling to make their payments. However, the number of Australians ‘Extremely At Risk’ has now risen to 710,000 (15.4%) in the three months to January 2023, which is slightly higher than the long-term average over the last 15 years. This is concerning and it remains to be seen what the future holds for mortgage holders in Australia.
Take control of your financial future and ensure your home loan is still working for you. Contact one of our expert brokers at hubbl.it today to review your options and save on high interest rates, reduce repayments, and consolidate your debts. Unexpected changes in income can have a significant impact on your ability to pay your mortgage, so it’s important to be proactive and take action. Contact us today and let us help you secure your financial future.
