The Reserve Bank (RBA) has lifted the official interest rate 11 times over the past year, and homeowners are struggling to keep up.
A staggering 40 per cent of Aussie mortgage holders – equivalent to 1.32 million households – admitted they struggled to pay their home loan in May, according to new data from Finder.
This was the highest proportion recorded since Finder began tracking the question in 2019.
The percentage of those struggling to pay was up from 24 per cent – or 792,000 households – 12 months ago in May 2022.
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More interest rate hikes mean more pain
Finder head of consumer research Graham Cooke said panic was starting to set in.
“With 11 interest rate rises over the past 12 months, and potentially another one or two on the horizon – millions of mortgagees are at the end of their tether,” Cooke said.
“Many are facing the frightening prospect of defaulting on their loans and potentially losing their homes.
“If you haven’t already, try to negotiate a lower rate with your lender. If you don’t get it, it might be time to refinance somewhere else.”
Which Aussies are struggling the most?
Finder’s data shows mortgage stress is most prevalent among women, with 47 per cent struggling to pay their home loan in May, compared to 32 per cent of men.
Millennial homeowners were also the hardest hit – a sizable 49 per cent admitted they were having trouble making their mortgage repayments, compared to 33 per cent of Gen X.
Mortgage stress is defined as when more than 30 per cent of your income goes towards your mortgage.