Since the beginning of the year, over 65,000 individuals have reached out to the National Debt Helpline, primarily due to struggles with mortgage payments. Recent statistics from Roy Morgan suggest that the number of borrowers facing potential mortgage stress is projected to increase to 1.64 million, following the recent rise in interest rates.
Those experiencing difficulties in repaying their mortgages are being encouraged to proactively engage with their lenders for assistance with financial hardships. The National Debt Helpline has seen a significant uptick in calls this year, with many Australians indicating that their home loan repayments have become burdensome.
On the previous day, the Reserve Bank of Australia increased interest rates for the third time in 2023, raising them by 0.25 percentage points, which adjusted the official cash rate from 4.10% to 4.35%. This adjustment has heightened concerns among borrowers about finding additional funds as financial situations grow increasingly strained.
Bianca Gambrill, a teacher from Newcastle, New South Wales, reported that her mortgage payments have surged by over $600 every two weeks since she purchased her home during the COVID-19 pandemic. She expressed that meeting these payments has become increasingly difficult. “We are only able to make the minimum repayments… If we continue at this pace, we will be paying off our mortgage into our 70s,” she shared in an interview.
To manage unexpected expenses, Ms. Gambrill resorted to using a credit card for her dog’s veterinary bills, which has resulted in a $10,000 credit card debt that she is struggling to repay. “It’s incredibly stressful; all our financial resources are directed toward the mortgage,” she explained.
Additionally, Ms. Gambrill, who was diagnosed with ADHD later in life, mentioned that the rising interest rates have also affected her ability to afford necessary medication. “This year, I’ve had to forgo my medication during school holidays to prolong my supply due to its high cost,” she added.
As the latest interest rate hike takes effect, financial counselors warn that it may push more Australians into mortgage stress. The National Debt Helpline has recorded a significant increase in calls, with April 2026 seeing 13,933 contacts compared to 11,554 in the same month last year. Calls related to mortgage stress are the most prevalent, with individuals typically spending over 30% of their income on home repayments.
Other reasons for reaching out include credit card debt, unpaid utility bills, obligations to the Australian Taxation Office, and personal loans. The escalating costs of fuel are also becoming a pressing concern, particularly for those living in rural areas.
Domenique Meyrick, CEO of Financial Counselling Australia, noted that this year has been exceptionally busy for their services. “When comparing April of this year to last, we have observed a 21% increase in calls and a 45% rise in the use of our chat function,” she stated. Recent statistics indicated that 41% of individuals contacting the helpline were employed, with 28% in full-time positions and 14% in part-time roles. Furthermore, 34% had dependents, and 27% fell within the 35 to 44 age demographic.
Meyrick emphasized that individuals across various sectors are experiencing financial difficulties. “Those in both full-time and part-time employment, as well as families with children, are feeling the strain,” she remarked. “For those already facing financial challenges, an interest rate hike can be the tipping point.”
As concerns about inflation and potential job losses rise, she noted that many individuals are prioritizing mortgage payments over other essential expenses, often neglecting utility bills and medical appointments. “People will do whatever it takes to ensure they meet their housing costs, which can lead to no discretionary spending left by the time they seek help from financial counselors,” she explained.
Experts advise those struggling with mortgage repayments to contact their lenders for support. “It’s important to reach out to your bank early and communicate your financial difficulties to request hardship relief,” Meyrick suggested.
According to Roy Morgan’s data released in late April, the increase in the cash rate to 4.35% is expected to elevate the percentage of borrowers at risk of mortgage stress to 30.4%, translating to 1.64 million individuals. If rates rise again in June to 4.6%, the at-risk borrower count could reach 1.67 million, marking an increase of 219,000 since the recent rate adjustments.
