A record number of Australian homeowners are struggling to pay their mortgage, according to new research by Finder, Australia’s most visited comparison site.
A staggering 40 per cent of Aussie mortgage holders – equivalent to 1.32 million households – admit they struggled to pay their home loan in May.
This is the highest proportion recorded since Finder began tracking the question in 2019.
The percentage of those struggling to pay is up from 24 per cent – or 792,000 households – 12 months ago in May 2022.
Graham Cooke, head of consumer research at Finder, said panic was starting to set in.
“Many are facing the frightening prospect of defaulting on their loans and potentially losing their homes,” he said.
“If you haven’t already, try to negotiate a lower rate with your lender. If you don’t get it, it might be time to refinance somewhere else.”
Finder’s data shows mortgage stress is most prevalent among women, with a worrying 47 per cent of women struggling to pay their home loan in May, compared to 32 per cent of men.
Millennial homeowners are hardest hit – a sizable 49 per cent admit they are having trouble paying their mortgage repayments, compared to 33 per cent of Gen X.
Finder has released its new free Mortgage Stress Calculator to help Aussies take control of their financial situation by understanding the amount of wiggle room in their home loan.
The Mortgage Stress Calculator is unique in that it not only shows users where a homeowner stands financially, but also how much of an interest rate rise they can cope with in the future.
Cooke said the free tool will help Aussies get an individual understanding of their financial situation by taking into account a range of factors.
“We believe this tool will be a valuable resource for anyone looking to manage their home loan and take control of their financial future,” he said.
Head online and visit https://www.finder.com.au/mortgage-stress to use the calculator.