Published 17 Mar 2025 by Cheryl Hayford
Everyone wants to protect their home, so what is mortgage stress in your home loan and how do you overcome it? Mortgage stress occurs when a household spends a significant portion of its income, often defined as over 30% of pre-tax earnings, on mortgage repayments, leaving little room for other essential expenses. This financial strain is exacerbated by rising living costs, interest rate hikes, or unexpected life events such as job loss or medical emergencies.
In Australia, mortgage stress is a growing concern, with 26.8% and growing of mortgage holders reportedly at risk. We’re seeing pressure right across Australia, but it’s particularly tough in areas with higher property prices and larger loan sizes.
Tammy Barton | MyBudget, Founder & Director
Struggling to pay on time or dipping into savings.
Reducing spending on groceries, utilities, or healthcare to prioritise mortgage payments.
Relying on credit cards or personal loans to cover expenses.
Anxiety, sleeplessness, and strained relationships.
Mortgage stress can arise from various factors:
Higher rates lead to larger monthly repayments.
Job loss or reduced hours can significantly impact financial stability.
Medical emergencies or urgent home repairs can disrupt budgets.
Taking on a mortgage that stretches finances too thin.
“Long-term, it can damage your credit score, limit future borrowing options, and delay achieving your financial goals.”
Tammy Barton, MyBudget Founder & Director
The free MyBudget Mortgage Stress Calculator simplifies this process:
1. Enter your household income and monthly mortgage repayments
2. Select your repayment frequency
3. View your result:
This visual tool helps you understand where you stand and offers actionable insights.
At MyBudget, we specialise in creating tailored budgets to help you regain financial control. Here’s how we support you:
1. Plan ahead: your income and expenses are mapped out 12 months in advance.
2. Automate finances: we manage your bills, savings, and repayments.
3. Build emergency savings: every budget includes a safety net for unexpected expenses.
4. Tailor to your lifestyle: enjoy date nights, holidays, or savings for a house deposit, all part of your personalised plan.
5. Dedicated support: “I can call MyBudget feeling completely stressed out about an unexpected bill or circumstance, and I always finish off the call feeling relieved and confident that my money is in good hands.” – _Sarah, current MyBudget client_
1. Review your budget: use MyBudget’s tools and expertise to identify savings opportunities
2. Talk to your lender: they may offer options like temporary repayment reductions or refinancing
3. Explore additional income streams: consider part-time work or renting out a spare room
4. Seek professional help: MyBudget provides personalised financial guidance tailored to your situation.
Financial stability isn’t just about managing numbers, it’s about peace of mind. With MyBudget’s Mortgage Stress Calculator and expert support, you can:
Don’t let mortgage stress take over your life. Use our free Money Tools to assess your situation, and let MyBudget help you build a brighter financial future.
Ready to transform your finances? Start your personal budgeting journey with MyBudget today .
This article has been prepared for information purposes only, and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
Imagine where your finances could be 12-months from now.
This page provides general information only. It does not take your personal circumstances into account and is not personal financial advice. For the scope and licensing of a particular service, check the service provider's current disclosures or contact MyBudget.
To talk through your own situation, call MyBudget on 1300 300 922 for a free, confidential, no-obligation appointment.