The Reserve Bank of Australia (RBA) has delivered some reassuring news for homeowners in its latest Financial Stability Review: most mortgage holders are in a strong position to handle a range of economic challenges.
The Key Findings
According to the RBA:
97% of borrowers currently have positive cash flow, meaning they’re able to comfortably meet their mortgage repayments — and many are even getting ahead on their loans.
Less than 1% of borrowers are in negative equity, where the outstanding mortgage is more than the value of the property. That’s a significant improvement compared to the pre-pandemic period.
In a severe scenario with a 30% drop in housing prices, around 90% of borrowers would still hold positive equity, meaning they could sell their property for at least the amount owed, if necessary.
What Does This Mean for Homeowners?
This data shows that most households have built up solid financial buffers — both in terms of savings and home equity. According to the RBA, these buffers provide a cushion to help borrowers navigate higher inflation, rising interest rates, or a downturn in the job market.
In other words, the vast majority of Australians with a mortgage are well-placed to weather a potential financial storm.
But Everyone’s Situation is Unique
While the overall picture is positive, it’s important to remember that not every homeowner has the same financial position. If you’re finding it tough to manage repayments or you’re worried about the future, help is available.
Speaking with your mortgage broker or lender early can open the door to support options, whether that’s restructuring your loan, accessing hardship assistance, or exploring refinancing.
Final Thoughts
It’s encouraging to see that most Australians are managing their home loans well, even amid economic uncertainty. But if you’re not sure where you stand — or want to strengthen your financial position — now is a great time to speak with a mortgage expert.
Need a hand with your home loan? We’re here to help. Reach out for a chat about your options.
