Around 28.3% of Australians with a home loan are currently at risk of mortgage stress, a decrease of 2% since the introduction of Stage 3 tax cuts in the new financial year, according to new research.
The latest Roy Morgan survey, based on 10,000 owner-occupied mortgage holders over three months to September, reveals that 1.7 million Australians are considered ‘at risk’ of mortgage stress, with 1.1 million being extremely at risk.
The data from September is above the long-term average over the last decade, although below the record high during the global financial crisis in 2008. The Stage 3 tax cuts have helped ease mortgage stress, with disposable income increasing for working Australians.
If the Reserve Bank of Australia raises interest rates by 0.25% in November, the number of Australians at risk of mortgage stress could increase to 1.75 million. Despite lower inflation rates, the RBA may still adjust interest rates depending on economic conditions.