JobKeeper and JobSeeker: 1.3 million Aussies could lose their home if support stops

Family worried about JobKeeper and JobSeeker stopping

Mozo research shows that more than a quarter of workers currently relying on JobKeeper and JobSeeker won’t be able to afford their rent or home loan repayments if the government support ceases. 

This amounts to approximately 1.3 million Australians potentially unable to keep a roof over their heads.

This analysis comes after the government announced changes to Covid-19 support payments on Tuesday. While JobKeeper and JobSeeker have been extended beyond the planned September end date, both will see a reduction in the coming financial quarter, and eligibility criteria will change for the Coronavirus supplement.

Around 3.5 million workers are receiving JobKeeker payments and 1.6 million are relying on JobSeeker. This means approximately 42% of Australia’s 12.1 million-person workforce is being supported via these government schemes.

Mozo’s data showed the vast majority of these people (92%) require this support to remain financially stable. In addition to the worrying housing situation, a third of surveyed income support recipients said they would not be able to afford to pay their bills if the payments stopped, with a fifth also unable to cover the cost of groceries.

According to the Australian Bureau of Statistics (ABS), unemployment has reached a 22-year high of 7.4%, with 992,000 people recorded as officially out of work. 

“With the jobs market on life support, JobKeeper and JobSeeker payments are critical in ensuring people can remain in their homes and have enough money to cover necessary expenses,” Mozo Director Kirsty Lamont said.

Housing lifelines: Plummeting rents and mortgage holidays

A joint ANZ-CoreLogic report has recorded drops in rental prices as high as 7% within inner city Sydney and Melbourne. It attributes these reductions to the sharp increase in advertised rental properties in these suburbs (more than a 50% jump between March and June), as typical city tenants have been financially impacted by the pandemic.

Lower rent could provide some relief for struggling tenants, who might consider moving to a cheaper property or negotiating their lease. Lamont encourages renters experiencing financial hardship to get in touch with their landlords, and for hard-hit homeowners to talk to their lenders.

“If you have a mortgage and have taken a holiday, some banks have announced they’ll offer extensions that can buy you a little extra time to get back on your financial feet,” Lamont said.

Those considering a home loan repayment holiday should keep the long-term costs of this move in mind, and consider all other available options.

If you’re in a financial position to do so, look into refinancing your home loan for a better deal and check out some of the options below.

Refinance home loans - last updated 11 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.60% p.a.variable for 24 months and then 4.00% p.a. variable
    3.96% p.a.

    Already includes July RBA rate increase. New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.


* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.