1 in 8 home owners behind on loan repayments

According to a survey by Finder, mortgage stress is escalating, with 13 per cent of respondents to its latest survey admitting they have missed a mortgage repayment in the past six months.

The research shows 7 per cent of mortgage holders have missed one home loan repayment in the past six months, while a worrying 6 per cent of home owners have missed more than one repayment.

That’s the equivalent of 429,000 mortgagors who have missed a repayment since July.

A small proportion of mortgage holders (2 per cent) have asked their lender for a repayment holiday or have applied for hardship.

Richard Whitten, home loans expert at Finder, said the level of mortgage stress in Australia was worrying.

“Nine consecutive rate hikes from the RBA means an Australian with the average loan size of around $600,000 will be paying roughly $1,000 more per month compared to what they were paying in April last year,” he said.

“Households are really struggling with the monthly outlay, and some just can’t keep up.”

The leading cause of missing a repayment was rising interest rates (37 per cent), while 33 per cent simply forgot to pay on time.

Of the Aussies who missed a repayment in the past six months, one in four (26 per cent) admit it was because they had run out of money after paying other bills.

If costs rise any further, one in seven (15 per cent) home owners said they think they will miss a repayment in the next six months.

Mr Whitten said mortgage rates were creeping up too quickly for many Australians.

“With mortgage rates shooting over 5 per cent in 2023, Aussies who had been diligently servicing their monthly repayments are finding it harder to do so,” he said.

“With further rate hikes predicted, things could be about to get worse.”