How to help Aussie homeowners deal with financial stress

For generations the great Australian dream of home ownership has played a major role in our collective wellbeing, providing financial security into our old age.  

So let’s look at how the report tells us we’re feeling about our homes and finances in 2024. Put simply, are we feeling good about owning a home or not? 

Home owners vs renters 

After 13 interest rises in a row, many Aussie homeowners are still coming to terms with the ‘new normal’ of a higher rate landscape. Higher rates have affected all types of homeowner – those with variable rates endured regular increases, while many fixed rate homeowners had an unwelcome shock when they rolled off. 

• Almost a third (31.5%) of mortgage holders believe their home loan repayments won’t be sustainable if rates continue to rise – that’s over a million households. 
• And a small number (2.6%) have even talked to their lenders about taking out a second mortgage to pay their debts. 
  

When you look at rate rises in the context of high inflation and cost-of-living pressure, it’s not surprising homeowners are feeling less than chipper. 

But despite the challenges, there’s clear evidence that owning a home is still preferable to renting. 

Renters might not have to focus so much on rate rises but they have other worries. Rents have been increasing and it can be tough to find a rental in the first place. 

• More than a third (37%) of Aussies who rent say they’re stressed. 
• And 38% of stressed Aussies cite the cost of rent as the primary reason. 

Brokers to the rescue 

The good news is brokers can play a vital role in helping their customers navigate the changed rate landscape. When we asked Aussies their reasons for seeking financial support, the number one reason was helping to manage their mortgage.