Mortgage Stress Tarneit: Get Help Now
Even though interest rates are falling, many homeowners face mortgage stress in Tarneit. This might be surprising. Many in Wyndham, Hoppers Crossing, Point Cook, Melton, Rockbank, Werribee, and Melbourne hoped for easier times.
“Interest rate cuts have lowered rates. But the latest figures for June show more mortgage stress. This is because people borrow bigger amounts. They also have bigger loan balances. At the same time, incomes are not growing as fast.” – Michele Levine, CEO, Roy Morgan.
New findings from Roy Morgan show a problem. 28.4 per cent of mortgage holders were at risk of mortgage stress. This was from April to June 2025. This is up 1.5 percentage points from May. It’s the highest risk since January 2025. That was before the Reserve Bank of Australia (RBA) started to lower its cash rate.
More bad news: Over 1 million Australians (19.7 per cent of mortgage holders) are now at “extreme risk.” This number is much higher. The average for the last ten years was 14.8 per cent.
Why is Stress Up When Rates Are Down?
The main reason is simple. People are borrowing more money to buy homes. Also, existing home loans have larger amounts left to pay. This is happening because house prices keep rising. In March 2025, the average Australian home cost over $1 million for the first time. When prices rise, people need bigger loans. This can cancel out the good of lower rates.
Since May 2022, the RBA started raising rates. Since then, the number of at-risk borrowers has jumped by 684,000.
What’s Next for Mortgage Stress?
The RBA kept rates the same in July. The rate is 3.85 per cent. But Roy Morgan thinks mortgage stress will drop soon. Most experts believe the RBA will cut rates in August.
If the RBA lowers rates by 0.25 per cent in August (to 3.6 per cent), Roy Morgan expects about 75,000 fewer people at risk. This would make the total 1.4 million. This is good, but 27 per cent of mortgage holders would still be at risk.
Another 0.25 per cent rate cut in September could help a lot. It might lower the at-risk number to 25.5 per cent. This would mean about 1.3 million borrowers. That’s a drop of 155,000 people from current numbers.
It’s More Than Rates: Income is Key
Michele Levine, CEO of Roy Morgan, has a key point. Lower rates help. But their long-term effect on mortgage pressure can be small. She says that household income is a bigger factor. It controls how much mortgage strain people feel.
“Lower interest rates usually mean less mortgage stress. But this help might be short-lived. New buyers can borrow more for bigger loans to enter the market. This then causes more mortgage stress,” Levine explained.
So, paying your mortgage depends a lot on your income and job security. House prices keep rising. Loan amounts are growing. Homeowners and buyers in Tarneit, Wyndham, Hoppers Crossing, Point Cook, Melton, Rockbank, Werribee, and Melbourne need to know their money situation well.
How EZ MORTGAGE BROKER Can Help You
Dealing with home loans and mortgage stress in Tarneit can be hard. That’s why EZ MORTGAGE BROKER is here. We know the exact challenges faced by homeowners and hopeful buyers in our areas.
Are you worried about higher payments? Thinking about changing your loan? Or just want to know how much you can borrow today? Our expert team is ready to help. We work hard to find solutions just for you. This helps you make smart choices with confidence.
Don’t let mortgage stress bother you. Contact EZ MORTGAGE BROKER today. Get a free, no-pressure chat.
Phone: 1300 050 099 Email: [email protected]
