For many Australians, buying a first home is one of life’s biggest milestones. But for some buyers, that excitement can quickly turn into financial pressure.
Research from Roy Morgan shows around 24.5 per cent of Australian mortgage holders are currently considered “at risk” of mortgage stress, a reminder that affordability remains a very real challenge, especially after the RBA hiked rates in February.
However, mortgage stress, defined as spending more than 30 per cent of gross household income on home loan repayments, rarely begins when interest rates rise. More often, it starts the moment the purchase decision is made.
Typically, buyers struggle because they stretched too far to secure the wrong one. If you want to avoid mortgage stress, the most important decisions happen before you sign the contract.