What is Mortgage Stress?

How is Mortgage Stress Defined?

Mortgage stress is often described as spending more than 30% of your pre-tax income on home loan repayments — but for many Australians, it’s not just a number. It’s the pressure you feel each month when your repayments take up more of your income than you’re comfortable with, leaving less room for everyday essentials and adding real strain to your life.

You don’t need a major life crisis like job loss to feel mortgage stress. With rising interest rates, higher living costs, and property prices at record highs, even households with steady employment are finding it harder to keep up. Many people were encouraged to borrow at their maximum capacity during the boom years, and now the increased repayments are pushing their budgets to breaking point.

If you’re feeling that pressure, you’re not alone — and there are options. One of the most effective ways homeowners ease mortgage stress is by speaking to us about refinancing their home loan. Refinancing can help you secure a better interest rate, adjust your loan term, or even restructure your debts so you can reduce your monthly outgoings and improve your cash flow. Small changes to your loan can make a big difference to how much financial breathing room you feel each month.

Is Home Loan Pressure making you wonder how to make ends meet?

Are rising interest rates and higher everyday expenses making it harder to stay on top of your mortgage? If so, you may be experiencing mortgage stress — and you’re far from alone. Today, more than two in five Australian households are in the same position.

The cost of living has climbed sharply across food, fuel, utilities, and insurance. At the same time, repeated RBA rate increases have pushed many families to — or beyond — their financial limit. Even households with steady incomes are feeling the pressure as repayments rise faster than wages, leaving little room to breathe. And for those who bought during the recent property boom, the strain can be even more intense.

Mortgage stress doesn’t just show up in your bank balance — it shows up in your daily life. When your home loan repayments leave too little for essentials like groceries, bills, petrol, or medical needs, every pay cycle becomes a source of anxiety. Many people find themselves forced into tough choices, like cutting back on basics just to keep up with the mortgage.

If this sounds familiar, it’s a sign that your loan may no longer be working for you — and that it might be time to explore options to ease the pressure.