Original article by Roy Morgan
Market Research Update – Page: Online : 1-Mar-23

New research from Roy Morgan shows that an estimated 1.19 million mortgage holders (24.9%) were ‘At Risk’ of ‘mortgage stress’ in the three months to January 2023. This period encompassed two interest rate increases of 0.25%. The proportion of mortgage holders now considered ‘At Risk’ of mortgage stress is the highest since June 2012 and is now significantly above the long-term average of 22.8% stretching back to early 2007. The number of Australians ‘At Risk’ of mortgage stress has increased by 486,000 over the last year. However, despite the sharp increase in the level of mortgage stress the overall number remains well below the high reached during the Global Financial Crisis in early 2009 of 35.6% (1,455,000 mortgage holders). Meanwhile, the number of mortgage holders considered ‘Extremely At Risk’, has increased to 710,000 (15.4%), which is slightly above the long-term average over the last 15 years of 659,000 (15.9%). These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

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ROY MORGAN LIMITED

Original article by Roy Morgan
Market Research Update – Page: Online : 23-Nov-22

New research from Roy Morgan shows that an estimated 1,013,000 mortgage holders (22.6%) were ‘At Risk’ of ‘mortgage stress’ in the three months to October 2022. This period encompassed two interest rate increases of 0.5% and an increase of 0.25% in early October, taking official interest rates to 2.6% – the level since August 2013. Since then, there has been another interest rate increase of 0.25% in November. Despite these interest rate increases the proportion of mortgage holders considered ‘At Risk’ of mortgage stress is well below the high reached during the Global Financial Crisis in early 2009 of 35.6% (1,455,000 mortgage holders). The number of mortgage holders now considered ‘At Risk’ is now just below the long-term average over the last 15 years of 22.8%. Meanwhile, the number of mortgage holders considered ‘Extremely At Risk’ increased to 619,000 (14.4%) in the three months to October, which remains clearly below the long-term average over the last 15 years of 659,000 (15.9%). These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year including over 10,000 owner-occupied mortgage-holders.

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ROY MORGAN LIMITED

Original article by Roy Morgan
Market Research Update – Page: Online : 21-Sep-22

New research from Roy Morgan shows that an estimated 854,000 mortgage holders (19.4%) were ‘At Risk’ of ‘mortgage stress’ in the three months to July 2022. This period encompassed the first three interest rate increases from the Reserve Bank. The good news is that the proportion of mortgage holders considered to be ‘At Risk’ of mortgage stress in mid-2022 is well below the high reached during the Global Financial Crisis in early 2009 of 35.6% (1,455,000 mortgage holders) and below the average of the last decade of 20.8% (904,000). Meanwhile, only 12.7% (542,000) of mortgage holders were considered to be ‘Extremely At Risk’ of mortgage stress in the three months to July 2022, below the average of the last decade of 13.9% (585,000 mortgage holders). These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with over 60,000 Australians each year, including over 10,000 owner-occupied mortgage-holders.

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ROY MORGAN LIMITED

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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ROY MORGAN LIMITED

Original article by Roy Morgan Research
Market Research Update – Page: Online : 29-Sep-17

A Roy Morgan Single Source survey has found that mortgage stress increased to 17.3% of Australian borrowers in July 2017, an increase of 0.3% points over the last 12 months, despite a decline in home loan interest rates. Over the last 12 months there has been an increase in mortgage stress for both those considered to be "At Risk" (which is based on the amount originally borrowed) and those "Extremely at Risk" (based on the amount currently outstanding). In the three months to July 2016, 17.0% of mortgage holders were "At Risk"; this has increased to 17.3% in July 2017. Over the same period the proportion that were "Extremely at Risk" increased from 12.4% to 12.8%. The main cause of the increase in mortgage stress was the fact that over the last year, the median household income of mortgage holders only increased by 2.0%, well behind the increase in the median amount borrowed (up 7.4%) and the median amount outstanding (up 13.1%).

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ROY MORGAN RESEARCH LIMITED