Record high 1.6 million Aussies face mortgage stress

WITH DANIEL WALSH AND LEIGH DELEDIO FROM U FINANCIAL

Amid the backdrop of soaring interest rates and economic uncertainties, there’s a pressing need for mortgage holders to find solace in the fact that they are not alone.

With more than 1.6 million mortgage holders in Australia, comprising 31 per cent of the total, facing potential mortgage stress in the three-month period leading up to January, it’s evident that the challenges are widespread. However, amidst these challenges, mortgage brokers are stepping up to offer crucial support and guidance to their clients.

In light of the recent findings from independent research, a new record of mortgage holders at risk of mortgage stress, brokers are emphasising their role in providing ongoing assistance. Since the Reserve Bank of Australia (RBA) initiated a series of interest rate hikes in May 2022, the count of Australians at risk of mortgage stress has risen by a staggering 802,000, reaching unprecedented levels.

The number of mortgage holders considered “extremely at risk” has climbed to 994,000, accounting for 19.8 per cent of the total. This is a significant increase from the 10-year average of 14.3 per cent.

As interest rates remain stagnant, mortgage brokers are playing a pivotal role in ensuring that their clients are well-supported and informed. Through regular loan reviews and check-ins, brokers are offering proactive assistance, helping clients navigate the complexities of the mortgage market and explore viable options to alleviate financial strain.

Among the strategies being considered are refinancing to secure better rates or restructuring the loan or extending loan terms, with careful consideration given to the potential impacts of such decisions. While these options may offer temporary relief, brokers are keen to highlight the importance of thorough assessment and prudent decision-making to safeguard long-term financial stability.

According to industry experts, the key to managing mortgage stress lies in personalised solutions and ongoing support from experienced professionals. By fostering strong relationships built on trust and reliability, mortgage brokers are empowering their clients to weather the storm and emerge stronger on the other side.

In times of uncertainty, the message is clear: mortgage holders do not have to face their challenges alone. With the support of dedicated mortgage brokers, they can navigate the turbulent waters of the mortgage market with confidence and resilience.

The team at UFinancial are here to help every day people navigate the complexities of their mortgage, including stress. Our slogan is ‘we make the complicated, uncomplicated’. If you would like to speak to a local UFinancial team member today, scan the QR code or phone 03 9686 9087.

Daniel Walsh (left) and Leigh Deledio from UFinancial.