Business Loans Australia :: News
SHARE

Share this news item!

Mortgage Crisis: 40% of Australian Homeowners Under Pressure

Mortgage Crisis: 40% of Australian Homeowners Under Pressure

Mortgage Crisis: 40% of Australian Homeowners Under Pressure?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A recent study has uncovered that an alarming number of Australian households are grappling with mortgage burdens, as over 1.4 million families find themselves in financial distress.
This amounts to more than 40% of current home loan holders, according to new data from Finder, a consumer finance comparison service.

The latest survey results, gathered consistently by Finder since 2019, revealed the most elevated levels of mortgage stress witnessed to date.

Compounding this concern, approximately 13% of surveyed households admitted to having missed one or more mortgage payments in the last six months.

The persistence of overleveraging among families is a significant component of this issue. As of August 2024, the typical owner-occupier loan has increased to $634,479, marking a 1.3% rise from the previous month. Over the past 12 months, the average mortgage figure has escalated by 9.3%, Australian Bureau of Statistics (ABS) data reveals.

Despite the economy showing signs of stagnation, the cash rate has remained unchanged since November 2023, keeping it at its highest point in 12 years. As Finder highlights, this has resulted in Australians allocating a disproportionate segment of their incomes solely to cover home loan repayments.

Insights from ANZ CoreLogic indicate an upward trend in income allocation towards mortgage servicing. Australians now use over 46% of their income for new mortgages, compared to 40% the previous year. The scenario is more severe in Sydney, where it takes in excess of 58% of an average household's income to manage mortgage payments.

Financial counselors commonly advise that households should not channel more than one-third of their income into mortgage payments.

Adding to the challenge is the diminishing savings buffers for Australians over the past decade. The ABS’s latest National Accounts report highlights a severe decline in the household savings ratio, plummeting to 0.6%-a substantial drop compared to a year-back in June 2022.

“While many mortgage holders have navigated rate hikes up until now, they are currently under acute financial pressure as their savings and emergency funds rapidly dwindle,” observed Finder’s Richard Whitten.

Whitten further emphasized, “For a growing number of Australians, housing-related costs are a primary stress factor, with numerous households struggling to stay afloat.”

Published:Monday, 9th Sep 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

ANZ Bank's Financial Performance and Strategic Cost Reductions
ANZ Bank's Financial Performance and Strategic Cost Reductions
14 Nov 2025: Paige Estritori
ANZ Group has reported a 14% decline in annual cash earnings, amounting to A$5.79 billion for the fiscal year ending September 30, 2025. This downturn is primarily attributed to a significant post-tax impact of A$1.11 billion, which includes A$414 million in redundancy costs for 3,500 employees and A$264 million in penalties from a regulatory lawsuit. - read more
CBA's First-Quarter Financial Results: Balancing Growth and Margin Pressures
CBA's First-Quarter Financial Results: Balancing Growth and Margin Pressures
14 Nov 2025: Paige Estritori
The Commonwealth Bank of Australia (CBA), the nation's largest bank by market value, has reported a modest increase in first-quarter cash profit, achieving approximately A$2.6 billion. This 1% rise from the previous two-quarter average is primarily driven by robust growth in home loans and household deposits. However, the bank's net interest margin has declined due to lower mortgage rates and intensified competition, reflecting the challenges in maintaining profitability amidst a competitive lending environment. - read more
October Sees Uptick in Australian Business Activity, NAB Reports
October Sees Uptick in Australian Business Activity, NAB Reports
14 Nov 2025: Paige Estritori
A recent survey by the National Australia Bank (NAB) reveals an improvement in Australian business conditions for October 2025, marked by a rise in sales and profits. The NAB business conditions index increased by one point to +9, reaching its highest level since March 2024. Despite this positive trend, business confidence experienced a slight decline, dropping one point to +6, though it remains above the long-term average. - read more
Japanese Banks SMBC and MUFG Propel Business Lending Expansion in Australia
Japanese Banks SMBC and MUFG Propel Business Lending Expansion in Australia
06 Nov 2025: Paige Estritori
Australia's business lending sector is witnessing a significant shift as Japanese banking giants Sumitomo Mitsui Banking Corporation (SMBC) and Mitsubishi UFJ Financial Group (MUFG) emerge as leading growth drivers. In July 2025, the combined business loan books of Australia's top 10 authorised deposit-taking institutions (ADIs) reached A$925 billion, with SMBC and MUFG recording the highest percentage growth rates among them. - read more
ANZ Ceases Share Buyback to Fund Strategic Restructuring
ANZ Ceases Share Buyback to Fund Strategic Restructuring
29 Oct 2025: Paige Estritori
In a significant strategic shift, ANZ Group has announced the cessation of its remaining A$800 million share buyback program. This decision is aimed at bolstering the bank's cash reserves to support a comprehensive restructuring plan under the leadership of CEO Nuno Matos. - read more
RBA's October 2025 Review Affirms Australia's Financial Resilience
RBA's October 2025 Review Affirms Australia's Financial Resilience
29 Oct 2025: Paige Estritori
The Reserve Bank of Australia (RBA) has released its October 2025 Financial Stability Review, providing a comprehensive assessment of the nation's financial system. The report underscores the resilience of Australia's financial institutions, households, and businesses in the face of elevated global uncertainties. - read more
Australian Business Conditions Remain Steady in September 2025
Australian Business Conditions Remain Steady in September 2025
29 Oct 2025: Paige Estritori
In September 2025, Australian business conditions remained steady, according to the latest survey from National Australia Bank (NAB). The survey's business conditions index held firm at +8, while the business confidence index saw a slight increase of 3 points to +7, both figures sitting just above their long-term averages. - read more


Business Loans Articles

Secured vs Unsecured Business Loans: Which is Right for You?
Secured vs Unsecured Business Loans: Which is Right for You?
In Australia, business loans are a crucial tool for companies looking to grow, expand, or manage cash flow. From small enterprises to large corporations, securing funding can mean the difference between success and failure. The financial landscape is diverse, offering various loan options tailored to different needs and business models. - read more
A Growth Blueprint: Crafting a Financial Plan for Expanding Enterprises
A Growth Blueprint: Crafting a Financial Plan for Expanding Enterprises
Financial planning plays a crucial role when businesses are poised for growth. As enterprises expand, a well-crafted financial plan acts as a guiding framework to navigate the complexities that come with scaling operations. This plan helps in ensuring that resources are meticulously allocated and potential financial hurdles are effectively managed. - read more
Alternative Funding Options for Your Australian Business
Alternative Funding Options for Your Australian Business
When it comes to starting or expanding a business in Australia, securing funding is often a top priority. However, traditional funding options, such as bank loans or government grants, can be difficult to obtain for small businesses. - read more
Understanding Loan Terms and Conditions: A Guide for New Business Owners
Understanding Loan Terms and Conditions: A Guide for New Business Owners
Starting a business often requires a substantial amount of capital, which many new business owners may not have readily available. Business loans can provide the necessary funding to help get your startup off the ground, from purchasing equipment to hiring staff and everything in between. - read more
From Application to Expansion: The Complete Roadmap to a Successful Business Loan Journey
From Application to Expansion: The Complete Roadmap to a Successful Business Loan Journey
For many Australian entrepreneurs, a business loan is a vital step towards achieving growth and success. Access to capital can fuel expansion, help manage cash flow, and provide the necessary resources to capitalize on new opportunities. However, navigating the journey from application to approval, and eventually, to expansion, presents its own set of challenges. - read more
Mastering Cash Flow: Essential Tips for Expanding Your Business's Working Capital
Mastering Cash Flow: Essential Tips for Expanding Your Business's Working Capital
Cash flow is the lifeblood of any business, signifying the money that flows in and out of your operations. It's essential for covering daily expenses, paying employees, and capitalizing on growth opportunities. Maintaining a healthy cash flow ensures that a business can meet its obligations and invest in its future. - read more
Startup Loans vs. Business Lines of Credit: Which is Better for Your Company?
Startup Loans vs. Business Lines of Credit: Which is Better for Your Company?
Starting a new business is an exciting journey, but it often requires a significant amount of funding to get off the ground. Whether it's for purchasing equipment, hiring staff, or marketing your new venture, securing the right type of financing is crucial for success. - read more


Need Help Finding a Loan?
Loan Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Interest Rate Lock:
An agreement between a borrower and a lender that allows the borrower to lock in the interest rate on a mortgage for a specified time period.