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The Guardian - AU
The Guardian - AU
National
Peter Hannam Economics correspondent

Almost half of Australian mortgage holders under financial stress as RBA tipped to raise rates again

Residential properties on a street in Melbourne
A Melbourne Cup Day interest rate rise of 25 basis points would be the 13th increase in the cycle and hoist the cash rate to its highest level since 2011. Photograph: Diego Fedele/AAP

Almost half of Australia’s mortgage holders are in financial stress even before an expected Melbourne Cup day interest rate rise goes ahead, paying at least 30% of their income to service their loans.

Households diverting at least 30% of their disposable income to service a mortgage – a standard stress gauge – will account for 48.5% of total borrowers by the end of the year, according to the Australian National University’s Australian tax and welfare system model.

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