Record rates of homeowners at risk of mortgage stress

Stressed out mother sitting in the middle of a toy train track set on her living room floor, while children are running around her

New research from Roy Morgan found that a record number of Australians with a home loan were at risk of falling into mortgage stress in August 2023.  

Mortgage stress is generally defined as spending more than 30% of your income on mortgage repayments. 

The number of homeowners at risk of mortgage stress has grown by 759,000 since May 2022, hitting a record high of almost 1.57 million in the three months to August 2023, according to Roy Morgan. That’s roughly 30.2% of mortgage holders in the country. 

The number of homeowners deemed ‘extremely at risk’ of mortgage stress, according to the data, has been riding high above the average of the last 15 years (15.3%) reaching 1.07 million, or 21% of homeowners.

RELATED: The mortgage cyclone ripping through household budgets 

Mortgage stress could only be a rate rise away for many 

While the Reserve Bank of Australia (RBA) chose to pause cash rate hikes again in their October decision, Roy Morgan modelled the hypothetical impact of both an October and November rate rise on levels of mortgage stress. 

They found that, if the RBA had increased the cash rate by 25 basis points to 4.35%, a further 91,000 homeowners would be at risk of mortgage stress, totalling 31.4% of borrowers. 

If the RBA then decided to give another 25 basis point boost to the cash rate in November, bringing it to 4.6%, we’d see an estimated 107,000 more Aussie homeowners at risk of mortgage stress. That would bring the total percentage of borrowers in the ‘at risk’ category to 31.7%. 

Finding a lower home loan rate could help combat mortgage costs 

As many lenders tend to raise their variable home loan rates in tandem with the cash rate, ensuring that you’re always on one of the lowest rates you can find can go a long way to reducing your monthly repayments and steering clear of mortgage stress. 

Of course, it’s easier said than done. But not impossible. 

There are ways to negotiate a cheaper home loan or refinance with a new lender, for instance. 

Otherwise, keep up to date with home loan rates using Mozo’s home loan comparison tool, featuring the latest rates, offers, and a quick overview of a loan’s features. Check some of the featured home loans below to get started.

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Last updated 24 August 2025 Important disclosures and comparison rate warning*
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  • Promoted

    Discount Fixed Rate

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Cashback
    Interest rate
    4.89 % p.a.
    Fixed 2 years
    Comparison rate
    5.62 % p.a.
    Initial monthly repayment
    $2,651
    Go to site
    • $2,000 cashback for new loans (T&Cs apply)
    • Up to $10,000 extra repayments annually
    • One free residential valuation per application
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.24 % p.a.
    Variable
    Comparison rate
    5.15 % p.a.
    Initial monthly repayment
    $2,758
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Promoted

    Lite Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.56 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • Earn Virgin Money Points every month
    • No ongoing home loan fees
    • Make additional repayments and redraw at no extra cost
  • Promoted

    Basic Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.63 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,880
    Go to site
    • ME Home Loans has confirmed a rate cut of 0.25% p.a. effective 30 August
    • $3,000 cashback when refinancing $700k+ (T&Cs apply)
    • Unlimited free redraw and extra repayments
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.67 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Promoted

    Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.72 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
  • Discount Fixed Rate

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Cashback
    Interest rate
    4.89 % p.a.
    Fixed 2 years
    Comparison rate
    5.62 % p.a.
    Initial monthly repayment
    $2,651
    Go to site
    • $2,000 cashback for new loans (T&Cs apply)
    • Up to $10,000 extra repayments annually
    • One free residential valuation per application
  • Optimum Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    4.99 % p.a.
    Fixed 1 year
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,681
    Go to site
    • No application, establishment or monthly fees
    • Make extra repayments up to $20,000 per year
    • Free redraw facility to access additional funds
  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.09 % p.a.
    Fixed 2 years
    Comparison rate
    5.69 % p.a.
    Initial monthly repayment
    $2,712
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available
  • Flex Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.23 % p.a.
    Fixed 2 years
    Comparison rate
    5.61 % p.a.
    Initial monthly repayment
    $2,755
    Go to site
    • Multiple offset accounts available
    • Free extra repayments
    • Easy redraw facility
  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.24 % p.a.
    Variable
    Comparison rate
    5.15 % p.a.
    Initial monthly repayment
    $2,758
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.29 % p.a.
    Variable
    Comparison rate
    5.33 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • RATE CUT NOW LIVE!
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.67 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.
  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.72 % p.a.
    Initial monthly repayment
    $2,773
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
  • Neat Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.39 % p.a.
    Variable
    Comparison rate
    5.41 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • RATE CUT NOW LIVE!
    • Free extra repayments
    • No annual fee to pay
  • Flex Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.39 % p.a.
    Variable
    Comparison rate
    5.64 % p.a.
    Initial monthly repayment
    $2,805
    Go to site
    • RATE CUT NOW LIVE!
    • Multiple offset accounts available
    • Free extra repayments
  • Discount Great Rate Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.50 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Get up to $3,000 cashback when you apply online (T&Cs apply)
    • No paperwork or payslips required (see site for details)
    • Low variable rate
  • OMG Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.52 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • BCU Bank Home Loans has confirmed a rate cut of 0.25% p.a. effective 2 September
    • No ongoing annual fees
    • Pre-approval valid for 3 months
  • Lite Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.56 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • Earn Virgin Money Points every month
    • No ongoing home loan fees
    • Make additional repayments and redraw at no extra cost
  • Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.54 % p.a.
    Variable
    Comparison rate
    5.57 % p.a.
    Initial monthly repayment
    $2,852
    Go to site
    • IMB Bank Home Loans has confirmed a rate cut of 0.25% p.a. effective 26 August
    • Get up to $4,000 cashback (T&Cs apply)
    • Split loan available
Showing 15 results from 393 home loans. Use the filters to see more

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* 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. You can change the loan amount and term in the input boxes at the top of this table. 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.

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