Mortgage stress is a term that’s been getting a lot of airtime lately, and for good reason.
According to Roy Morgan research, more than 1.3 million Australian mortgage holders (this means about one in four) are now considered at risk of mortgage stress. That’s a big number and with rate hikes in Feb, March and May 2026, we know there are many homeowners finding things tough right now.
Mortgage stress is typically defined as the point when repayments exceed a certain % of one’s gross household income. However, it can also be defined more subjectively, based on the borrower’s general feelings towards their mortgage.
How are you feeling about your mortgage and your ability to meet your repayments?
Mortgage stress doesn’t mean you’re about to lose your home. It just means the numbers might be a little tight and any unexpected hit (like a medical bill, a job change, or a car that decides to die), could tip things over into genuinely difficult territory.
The sneaky thing about mortgage stress
A lot of people don’t realise they’re in it until they’re really in it.
The rate rises didn’t all happen at once. They’ve crept up gradually, each one feeling manageable in isolation, but adding up to a very different picture than a couple of years ago. Add in higher costs for groceries, energy and insurance, and it all builds up.
What can you actually do about it?
If repayments are starting to feel uncomfortable, here are some practical things worth exploring:
Look at your offset account. If you’re not using it, or not using it well, that’s low-hanging fruit. Every dollar sitting in offset is reducing the interest you’re paying. There are no applications, no lender approval, no paperwork – you just need to check you’re using your offset properly.
Examine your interest rate. If you haven’t reviewed your rate in the past year or two, there’s a reasonable chance you’re not on the best deal available to you right now.
Consider your loan structure and loan term. Sometimes it’s not just the rate that’s the problem. It could be the way your loan is set up, that’s adding pressure.
Investigate your lender’s hardship options. This should only be considered as a last resort because it can have lasting implications on your credit file. If things are genuinely difficult right now, your lender is likely to have hardship provisions you can explore.
The worst thing you can do is wait and hope things magically sort themselves out. If repayments are getting tight, let’s look at the numbers together and figure out what we can do to help give you some breathing space.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice. Please consider your own circumstances and seek professional advice before taking any action.
