Original article by Roy Morgan
Market Research Update – Page: Online : 22-Jun-22

New research from Roy Morgan shows that an estimated 762,000 mortgage holders (17.5%) were ‘At Risk’ of ‘mortgage stress’ in the three months to March 2022. This period encompassed the ‘Omicron wave’ of COVID-19 throughout Australia, although interest rates in the first few months of 2022 were still at a record low level of only 0.10%. Mortgage stress dropped to record lows during 2021 as record low interest rates, government stimulus, and considerable measures taken by banks and financial institutions to support borrowers in financial distress all combined to reduce the number of mortgage holders considered ‘At Risk’ to fewer than 600,000 for the first time. There has been a similar trend for mortgage holders considered ‘Extremely At Risk’, with only 10.7%, or 438,000, in this group in the three months to March 2022, close to a record low. However, there has been a big change in the last few months as concerns about inflation have increased and the RBA has commenced an interest rate hiking cycle.

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