Nearly one in five borrowers are shelling out more than 30 per cent of their income on mortgage repayments, according to internal Reserve Bank research.
Sydney and Melbourne are home to Australia’s most indebted homeowners, while nearly one in five borrowers nationally are shelling out more than 30 per cent of their income on mortgage repayments, according to internal Reserve Bank research.
That would place a further strain on already stretched household balance sheets, which have come under pressure as a result of the fastest interest rate tightening cycle in more than three decades. Sydney and Melbourne, as well as rural areas in Western Australia and the Northern Territory, recorded the highest proportion of households in mortgage stress.
“Things that really matter, like arrears and defaults still seem to be very low, so [mortgage stress] doesn’t seem to be having any sort of major macro implications for the economy at this point, apart from the fact that people are probably adjusting their spending elsewhere,” he said.“If interest rates stay high or go higher, then that will be a problem for some. But I think the state of the economy and unemployment in particular is probably the key for trouble with the mortgage market.
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