The Reserve Bank’s (RBA) aggressive interest rate hikes have created a massive division between mortgage holders, with some able to stash away extra cash and others falling behind on repayments.

The total amount of cash stashed in mortgage offset accounts hit a new record high of $265.45 billion in the December quarter, the latest figures from the Australian Prudential Regulation Authority (APRA) revealed.

That’s a 16 per cent rise - or an extra $37.4 billion - since the start of the rate hikes in May 2022. In the December quarter alone, mortgage holders added $8.25 billion, or an extra 3 per cent, to their offset accounts.

Are you a mortgage holder struggling with repayments? Contact tamika.seeto@yahooinc.com to share your story

But it’s a tale of two cities, with arrears also climbing simultaneously. According to APRA, mortgages that are 30-89 days overdue rose for the fifth quarter in a row by $1.54 billion to a total of $13.28 billion.

Mortgage repayments that are 90 days or more overdue are also on the rise, increasing $1.3 billion over the quarter. However, as a share of credit outstanding, both figures are still low by historical standards.

RateCity research director Sally Tindall said the figures “highlight just how blunt the RBA’s cash-rate hammer actually is”.

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“Some borrowers continue to stash extra cash into their mortgage, while others are calling up their bank asking to be put on their hardship programs,” Tindall said.

She said Aussies tended to “bunker down” during tough times but this wasn’t possible for many borrowers.

“Parking every spare dollar in the mortgage is a great way to get at least some relief from rising rates, but the reality is some borrowers just don’t have a dollar to spare,” she said.

Despite arrears being below pre-COVID levels, Tindall expected the value of loans falling behind on repayments would rise in the coming months, with owner-occupiers left with “limited levers to pull”.

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Housing affordability hits ‘crisis point’

The average household is now spending just under 48 per cent of their income on mortgage repayments, a recent report by the Real Estate Institute of Australia (REIA) found.

This is tipping housing affordability for mortgagees to an “all-time crisis point”. Real Estate Institute of Australia president Leanne Pilkington said it was the worst on record.