Mortgage Stress Hits 12-Year High as RBA Prepares to Strike Again

The latest mortgage stress survey from Roy Morgan reveals that over 32% of Australian households with mortgages are struggling to pay their loans, with some at extreme risk.

This figure is the highest since the Global Financial Crisis in mid-2008, when the official cash rate hit 7%. In contrast, the current cash rate stands at 4.60%, following a recent hike of 0.25% by the Reserve Bank of Australia (RBA).

The RBA has priced in at least one and possibly two additional rate hikes, which could exacerbate mortgage stress for those already struggling.