Australian mortgage struggles revealed ahead of interest rate decision

New research has shed light on the staggering number of Aussies struggling with mortgages ahead of the Reserve Bank’s interest rate decision.

New research has revealed the frightening number of Australians struggling to meet mortgage repayments.

New research has shed light on the staggering number of Aussies struggling with mortgages ahead of Tuesday’s interest rate decision.

Comparison site Finder has revealed 40 per cent of Australians – the equivalent of 1.32m households – did not make their May mortgage repayment easily.

This is the highest number recorded since Finder began tracking the concerning issue in 2019.

The data revealed that the percentage of people struggling with mortgages is up from 24 per cent – or 792,000 households – from May 2022.

Around 40 per cent of Aussies admit they are struggling to pay mortgages, Finder research reveals.

Finder has released data on the number of Australians struggling to pay their mortgage.

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It comes ahead of the Reserve Bank of Australia’s decision on interest rates with Finder experts predicting another increase.

Finder’s 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,” he said.

“Many are facing the frightening prospect of defaulting on their loans and potentially losing their homes.

The starting statistics comes as home prices increase over the past month. Picture: Julian Andrews

Finder’s Graham Cooke said panic was setting in.

SQM Managing Director Louis Christopher said tomorrow’s decision was “crunch time”.

“Two in five mortgage holders struggling is the highest figure we’ve seen in four years of asking, and more rate rises seem likely.”

Finder’s research found mortgage stress was most common among women, with 47 per cent of women struggling to pay their home loan in May, compared to 32 per cent of men.

Millennial homeowners were hardest hit with 49 per cent admitting to mortgage struggles.

“If you haven’t already, try to negotiate a lower rate with your lender,” Mr Cooke said.

“If you don’t get it, it might be time to refinance somewhere else.”

SQM Research’s managing director Louis Christopher also spoke out about the worrying impact of another rate rise, following an increase in house prices across Sydney.

The reality of mortgage holders comes a day ahead of the Reserve Bank of Australia’s decision on interest rates.

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“We believe that if the cash rate were to cross over into 4 per cent, that really does mean trouble for many existing home borrowers and we will likely see a rise in the number of distressed listings,” he told The Daily Telegraph.

Mr Christopher said up until now, the market and community have managed to take the rate rises.

“We are very close to the crunch point where there will be forced selling. Would be buyers need to remain cautious because the story on interest rates hasn’t been played out yet.”

Originally published as Australian mortgage struggles revealed ahead of interest rate decision