More than 1.4 million Australians are considered “at risk” as mortgage stress peaks to its highest level in five years.
Mortgage Stress
Over 1.4 million Australians are now considered ‘at risk’ due to high mortgage repayments, marking a significant rise in mortgage stress levels. The number of people facing this financial strain has reached its highest point in five years, causing growing concern among economists and policymakers.
Mortgage stress, defined as a situation where a homeowner’s income is insufficient to cover mortgage repayments and other living expenses, is on the rise. This increase comes amid fluctuating economic conditions, stagnant wage growth, and rising living costs that have left many Australians struggling to keep up with their mortgage repayments.
“This is a concerning trend,” said one leading economist. “The fact that over 1.4 million Australians are at risk because of high mortgage repayments highlights the growing problem of housing affordability in our country.”
The rise in mortgage stress is not just a problem for homeowners. It also poses a significant risk to the broader economy. High levels of mortgage stress can lead to increased rates of loan defaults, potentially destabilising the banking sector and the housing market.
Policymakers are being urged to address this issue as a matter of urgency. Proposed solutions include implementing measures to improve housing affordability, such as increasing the supply of affordable homes and offering financial support to those struggling with repayments.
“We need to take action now to alleviate the pressure on those at risk,” said a representative from a leading housing advocacy group. “This includes exploring all options to make housing more affordable and providing support for those struggling with mortgage stress.”
As mortgage stress levels continue to rise, the plight of the 1.4 million Australians at risk serves as a stark reminder of the pressing need to address housing affordability. The situation calls for a comprehensive response from policymakers, financial institutions, and the community to ensure that homeownership does not become an unattainable dream for many Australians.
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