Australian Mortgage Stress Rises After Five Interest Rate Hikes

Nearly 32 percent of Australian mortgage holders were at risk of mortgage stress in the three months ending September 2026, according to data from Roy Morgan. This trend follows five interest rate increases within a single year, which have strained household budgets as inflationary pressures persist.

Research from Arca, the peak credit industry association body, found that 43 percent of people experienced financial stress over the past year. Despite this, only 9 percent of those affected sought support from their lenders. Elsa Markula, chief executive of Arca, urged struggling borrowers to contact lenders early to access financial hardship assistance programs.

Home loans expert Richard Whitten of Finder noted that the most recent rate hike adds approximately $658 annually to a $500,000 mortgage. He advised homeowners to negotiate better rates with their banks or compare loan options to reduce their payments.