Mortgage Stress Australia: Your Ez Guide Amidst Rising Pressures

Mortgage stress in Australia is a growing worry for many homeowners. You might think lower interest rates would make things easier. But for many Australian families, it’s getting harder to manage home loan repayments. At Ez Mortgage Broker, we want to explain why this is happening. We also want to show you how we can help you find a clearer path forward.

Understanding the Rise of Mortgage Stress

Recent research from Roy Morgan shows a clear picture. In the last three months to June 2025, almost 1.5 million mortgage holders faced stress. This means nearly 28.4% of all homeowners struggled with their loan payments. This number is higher than it was in January, even before the Reserve Bank of Australia (RBA) cut rates.

The problem is most common in New South Wales. Nearly one-third of homeowners there are affected. Victoria and Queensland are also seeing high levels of stress.

Michele Levine, from Roy Morgan, explained a key reason. Lower rates can help, yes. But they also let new buyers borrow more money to enter the housing market. Bigger loans, combined with slow income growth, put more pressure on household budgets. This leads to higher outstanding loan amounts and more mortgage stress in Australia.

The Serviceability Buffer and Australian Mortgages

Another big factor is the mortgage serviceability buffer. This is a rule from the Australian Prudential Regulation Authority (APRA). It makes lenders check if you could still afford your loan if interest rates went up by 3%. This buffer has stayed at 3% since October 2021. This is true even though some groups want it lowered.

The Finance Brokers Association of Australia (FBAA) thinks a smaller buffer would help many people. Their report suggested that if the buffer dropped by just 0.5%, many more Australians could buy a home. It could also unlock billions in borrowing power. This would especially help younger Australians (25-34 years old). They believe this change would ease mortgage stress in Australia.

What Does This Mean for Your Home Loan in Australia?

The current situation means that even with lower interest rates, getting a home loan needs careful thought. You need a loan that fits your budget now and in the future. It’s a tricky balance between rising property prices and strict lending rules.

This is exactly where an experienced mortgage broker can help you most.

How Ez Mortgage Broker Can Support You

At Ez Mortgage Broker, we are here to guide you through these challenging times. We give clear, helpful advice to help you avoid or manage mortgage stress in Australia.

We can:

• Check your borrowing power. We’ll look at your situation honestly. We help you understand what you can truly afford, considering current rates and the buffer.
• Find many loan options. We work with many different lenders. This helps us find loan products that fit your unique needs.
• Give expert advice to boost your finances. We can show you steps to make your loan application stronger. This can also help reduce future financial pressure.
• Help you understand the market. We explain how interest rate changes and lending rules impact you.
• Assist existing homeowners. If you are feeling stressed now, we can look at refinancing options. This might help ease your burden. We work within the current buffer rules.

Don’t let worries about mortgage stress in Australia stop your homeownership dreams. And don’t let it overwhelm your current financial situation. We are here to give you simple, expert guidance.

Ready to Ease Your Mortgage Stress?

Contact Ez Mortgage Broker today for a free chat. There’s no obligation. Let us help you work towards a more secure financial future.

You can reach us at [email protected] or by calling 1300 050 099.