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.

CORPORATES
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%).

CORPORATES
ROY MORGAN RESEARCH LIMITED