Mortgage stress continues to affect Australian households, with recent data showing an increase in the number of borrowers facing financial strain. In the three months to November 2024, 26.8% of mortgage holders were classified as “at risk,” marking a 0.5% rise from October.

Alarmingly, 16.9% of mortgage holders, or approximately 931,000 individuals, are deemed “extremely at risk”—well above the long-term average. While this figure is lower than the record highs during the Global Financial Crisis, the impact is still significant.
On a positive note, easing inflation has raised expectations for interest rate relief. Roy Morgan CEO Michele Levine remarked, “The rapid decline in inflation over the last year has led to hope that the RBA will reduce interest rates in the months ahead.” However, with core inflation still above target, the RBA has signalled caution.
The market sentiment reflects this optimism. Consumer confidence in housing is improving, with potential mortgage rate cuts driving increased positivity across demographics. Some economists and lenders anticipate a rate cut as early as February 2025, which could provide much-needed relief to mortgage holders.
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