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Over half of Aussies ‘burdened’ by their mortgage

A majority of borrowers are “burdened” by their mortgage, which they believe “limits their lifestyle”, according to new research.

According to a survey of 1,001 mortgage holders from customer-owned lender Gateway Bank, 56 per cent of Australians were experiencing “mortgage stress”, claiming that their home loan “limits their lifestyle”.

CEO of Gateway Bank Paul Thomas claimed that the findings are a reflection of the consistent increase in household debt across the country.


“In the pursuit of getting their foot into the property market, some Aussies have become over-indebted, leading us to record high household debt-to-income ratios of 189 per cent,” Mr Thomas said.

“Add to this the steep decline in household savings, which is currently at 1 per cent, and you have yourself a recipe for mortgage stress.”

The survey found that Adelaide residents topped the nation for mortgage stress, with 63 per cent of Adelaide residents considering their home loans to be a burden.

Conversely, Sydneysiders boasted the lowest percentage of burdened home owners (54 per cent), followed by Melbourne (58 per cent), Darwin and Brisbane (61 per cent), and Perth (62 per cent).

Aussies turning to “rentvesting”

Gateway’s research also reported that 9 per cent of surveyed respondents were “rentvestors”.

Of those who identified themselves as rentvestors, half were Millennials, 38 per cent were from Generation X and 10 per cent were Baby Boomers.

According to Mr Thomas, rentvesting provides Australians with a way into the property market; however, he warned prospective rentvestors not to rush into the pursuit, with the survey revealing that 65 per cent of those currently rentvesting were experiencing mortgage stress.

“The Australian property market is flatlining for the first time in years and lending restrictions are tighter than ever before, so savvy Aussies are looking for other ways to get a foothold in the Great Australian Dream,” Mr Thomas added.

“It seems that for almost 10 per cent of Aussies, rentvesting has presented an opportunity to enter the property market.

“However, prospective rentvestors should be wary before going down this path, as it does require a lot of consideration.”

[Related: 13% of investors will ‘struggle’ to repay P&I]

Over half of Aussies ‘burdened’ by their mortgage

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