Mortgage stress occurs when a household spends more than 30 percent of its pre-tax income on mortgage repayments. As interest rates rose sharply from 2022 through 2024, mortgage stress levels across Australia increased significantly, particularly among younger borrowers who purchased near the peak of the property market.
The Reserve Bank of Australia Financial Aggregates and ABS Housing Finance data track mortgage repayment burdens across Australian households. Mortgage stress is unevenly distributed across age groups, with Australians aged 25 to 44 most commonly affected.
Geographic location plays a significant role in mortgage stress rates. Households in outer suburban areas of Sydney and Melbourne experience higher rates of mortgage stress than those in regional areas with lower property values.
Data sourced from the Reserve Bank of Australia Financial Aggregates, ABS Lending Indicators, and CoreLogic property market research. Updated quarterly.