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7NEWS
3 days ago
- Business
- 7NEWS
1.2 million borrowers still at risk of mortgage stress, as RBA holds rate
As Australians recover from the Reserve Bank's shock decision to hold the cash rate this week, a new survey has found recent rate cuts have provided some relief for mortgage holders, with the proportion of households under mortgage stress decreasing in recent months. The survey of 1000 people by comparison company Finder revealed the number of borrowers who spend more than 30 per cent of their after-tax income on mortgage repayments has fallen from nearly 50 per cent in February to just over one-third. The definition of mortgage stress is when a large portion of your income - typically 30 per cent - is spent on your mortgage, leaving little for everyday expenses and unexpected costs. The latest analysis by Finder revealed 37 per cent of homeowners are spending more than 30 per cent of their household income on mortgage payments, compared to 47 per cent in February. That's 1.2 million borrowers who are still at risk of mortgage stress - down from 1.55 million earlier this year. Finder's most recent analysis showing almost one in five (19 per cent) spend more than 40 per cent of their household income on mortgage repayments. Even more startling is that seven per cent of borrowers are spending more than half of their income on home repayments. Meanwhile, Finder's Consumer Sentiment Tracker reveals 13 per cent of households have missed at least one mortgage repayment in the past six months. Despite the shocking statistics, Finder home loans expert Richard Whitten, says mortgage holders are under significantly less financial strain since the rate cuts in February and May. "The loan to income ratio is improving with thousands of homeowners getting relief when they need it most," Whitten said. "This shift marks a turning point - for the first time in years, many households are finally able to breathe financially," he added. The survey found two thirds of borrowers (63 per cent) are now spending less than 30 per cent of their income on mortgage payments, compared to 53 per cent in February. While the average Australian mortgage holder spends 28 per cent of their after-tax income on their mortgage - just below the recommended threshold of 30 per cent. However, Whitten was quick to add that many households will be relying on further rate cuts to ease financial pressure. "Low mortgage stress doesn't mean everyone is suddenly flush with cash," he said. "While the two rate drops so far in 2025 have provided some relief month to month, many families are still living pay cheque to pay cheque. "The fact that over a million borrowers are still stretched shows we're not out of the woods - but the worst may be behind us," he said. Whitten encouraged borrowers to explore refinancing as lenders drop their rates. "Refinancing to a cheaper loan could put hundreds of dollars back in homeowners' pockets each month - a simple move that can ease pressure and keep repayments on track," he said.
Herald Sun
7 days ago
- Business
- Herald Sun
Experts divided: Cost-of-living crisis or housing havoc?
Has the cost-of-living crisis finally ended? Some of Australia's top finance and property experts certainly think so. Finder's latest RBA Cash Rate report, which surveyed 34 experts and economists on future cash rate moves and other issues relating to the state of the economy, showed 88 per cent (30 out of 34) respondents believe the RBA will cut the cash rate tomorrow, bringing it down to 3.60 per cent. On the topic of cost-of-living, almost half of experts (44 per cent) said they believed the crisis was over. In comes as the amount Aussies are saving each month – $932 – reached an all-time high in June 2025, up from $614 in June 2023, according to data from Finder's Consumer Sentiment Tracker. MORE NEWS When is the next RBA rates meeting in 2025? Shock salary you now need to buy a home Little-known rule could save you $800 Finder's data shows mortgage stress is also at a two-year low – down to 34 per cent. Despite higher average savings rates, Stella Huangfu from the University of Sydney noted that many were still doing it tough. 'Finder's research reveals that 43 per cent of respondents have less than $1000 in savings, and 18 per cent have no savings at all,' she said. 'Additionally, the cost of essential goods and services remains high. 'Experts predict that grocery prices are unlikely to decrease in 2025, and real household disposable income has declined by nearly 10 per cent since its peak, indicating that many Australians are still struggling to keep up with living expenses.' Graham Cooke, head of consumer research at Finder, said while some Australians were gaining financial confidence, others were barely scraping by. 'Whether the cost of living crisis is over really depends on who you ask,' he said. 'While Finder's Cost of Living Pressure Gauge shows that cost pressures are easing, rents are still sky-high and relief is being more directly felt by homeowners. 'The property class divide in Australia is widening.' However, Jakob Madsen from The University of Western Australia said the crisis was not as large as many believe. 'I think the so-called cost-of-living crisis is blown up and clearly not of the scale we saw in the 1970s and 1980s,' he said. 'Most remuneration is indexed to consumer prices, so the standard of living has not changed much. 'The exception is some rentiers and new entrants into the housing market have experienced marked increasing costs. But this is all caused by the escalation of house prices, not a general increase in the real value of pensions and wages.' Kyle Rodda from said the cost-of-living crisis was basically a housing crisis. 'If you rent, things are tough. If you are leveraged to your eyeballs on your home, things are tough. 'Given the housing problem is supply driven and there's not much being done to address that, then the 'crisis' is likely to continue.' Adj Prof Noel Whittaker from QUT pointed to a growing wealth divide. 'We are living in very much a two-tier society, and the gaps between the haves and the have-nots appear to be widening,' he said.
Yahoo
13-06-2025
- Business
- Yahoo
Grim $215 revelation exposes bleak reality for millions in Australia: 'It's crazy'
Millions of Australians have little to no financial backup, as new data has revealed the startling amount in people's bank accounts. Finder's Consumer Sentiment Tracker found the average Aussie had about $33,345 sitting in an account. However, 43 per cent of people who responded to their survey, equivalent to 9.2 million Aussies, said they had less than $1,000 stashed away. The average amount of that cohort was just $215. Finder also discovered 18 per cent of people, or 4.3 million individuals, had absolutely nothing. Average amount Australians have stashed in savings by age revealed ATO, Centrelink warning over $100 million Powerball lottery win Centrelink cash boost coming from July 1 for millions of Aussies Many who were in the sub $1,000 club expressed that the cost of living in Australia was holding them back from being able to get ahead. "It's really expensive," a 59-year-old with just $19 to his name explained to loan company Coposit. "Food has gone up from $150 a week, and now it's like $300... it's crazy. A loaf of bread went from $1.85 to almost $3, [it's] doubled in the last 12 months.""Living out of home at 24 is very expensive, and I'm a student, so I'm only working part time," a Sydney resident, who had $600 in her account, said. "[Renting] makes it even more difficult to save that money, because there's no backup." A 22-year-old said he was "broke" mainly because of rent and spending too much money on nights out. "Sydney, is expensive... you can go get a s**tbox apartment for $300 a week... that's like, heaps, right?" he said. "One bedroom, and you got a sink that doesn't work. Laundry doesn't work, you know? It's just too pricey. But I also go out too much and drink too much." Another 24-year-old from Germany who is living in Sydney said rent was her biggest wallet drainer, as she only had 67 cents in her savings account. A 77-year-old former music promoter who worked with bands like Men at Work and INXS had zero savings. Despite that, he didn't seem to be too glum about his financial situation. "Spend your money," he said. "You can't take it with you. You've got a million dollars when you die or no money, having no money's better." Findex financial adviser Jess Bell said a good savings goal was to have three months' worth of income stashed in your rainy day fund. "That's at least comfortable to provide for emergencies,' she told Yahoo Finance. 'You need to make sure you have emergency funds to provide for those contingencies that just come out of the blue. "It's making sure that you allow for when things go wrong, because they can go wrong.' Here's how much the average Australian has in savings by age, according to Westpac data, with both the mean and median amounts listed: 17 and under: $4,769 and $1,135 18 to 24: $13,069 and $2,410 25 to 29: $19,165 and $2,200 30 to 34: $21,394 and $1,104 35 to 44: $29,769 and $811 45 to 54: $52,836 and $1,429 55 to 64: $87,891 and $5,316 65 to 74: $101,004 and $15,829 75 and over: $130,597 and $31,424Sign in to access your portfolio
Sky News AU
23-05-2025
- Business
- Sky News AU
Aussie home buyers buoyed by RBA's recent interest rate drop, but prospect of future cuts could lead to price rises, Finder expert says
Forecasts that more RBA rate cuts are to come could deter homeowners from putting their house on the market just yet and lead to price rises, an expert has said. The claim follows research carried out by comparison website Finder after the Reserve Bank of Australia delivered its second rate cut of 2025. The cash rate now sits 0.5 per cent below its 2024 level, driving the appetite for property purchases as mortgage rates reduce. Finder's Consumer Sentiment Tracker showed 36 per cent of Aussies felt now is a good time to purchase property, up from 29 per cent in May 2024 and 25 per cent in May 2023. Millennials and Baby Boomers were most encouraged by the news with two in five saying now is a good time to buy. Finder money expert Richard Whitten said demand will heat up as borrowing costs fall; however, this could cause a house price spike for the Aussies desperate to break into the market. 'This could mean prospective buyers have less flexibility when negotiating a price as demand spikes,' Mr Whitten said. 'The forecast to cut the cash rate two more times by Christmas will improve sentiment even more. 'Some homeowners might be holding off putting their property on the market until interest rates fall further, which means fewer properties available to buy, propping up prices.' House prices in Australia rose 3.2 per cent in the year to April 30, according to CoreLogic, and have jumped more than 40 per cent over the past five years. The relatively low price rises over the past 12 months could be a thing of the past due to the boost in consumer confidence from the rate cuts, Mr Whitten said. 'The latest cash rate cut is expected to bolster consumer confidence further in the housing sector, as lower borrowing costs make property investment more accessible,' he said. 'The reduced cost makes real estate a more attractive asset class.' Finder's analysis of data from the Australian Bureau of Statistics showed the number of owner-occupied loans issued rose 4.1 per cent in May compared to a year before, while the average home loan size grew 8.3 per cent to $659,920. Commonwealth Bank of Australia and Westpac are each expecting two more 0.25 per cent interest rate cuts in 2025 to bring the cash rate down to 3.35 per cent. ANZ expecting two consecutive cuts, bringing the cash rate to 3.35 per cent in August, while NAB expects three cuts for a terminal cash rate of 3.1 per cent in November.
Scoop
23-04-2025
- Business
- Scoop
Despite Low Confidence In Government Efforts, People Want Urgent Action To Lower Grocery Bills
Press Release – Consumer NZ Consumers NZ Grocery Survey, carried out in mid-April, reveals a strong public appetite for government action to improve access to affordable food. Many respondents called for clear and effective intervention by the government, while also expressing … Consumer NZ calls for stronger regulation of supermarket pricing and promotional practices following its new survey on supermarkets. Consumer's NZ Grocery Survey, carried out in mid-April, reveals a strong public appetite for government action to improve access to affordable food. Many respondents called for clear and effective intervention by the government, while also expressing low confidence in its ability to deliver. 'New Zealanders are struggling to access quality food at affordable prices, and they're not seeing meaningful change at the checkout,' says Consumer NZ chief executive Jon Duffy. 'We're pleased the government has kicked off a request for information process to explore how new entrants could help increase competition and deliver better grocery prices for New Zealanders. But the urgency is real.' The survey also revealed the growing impact of rising prices on households. Thirty percent of people have needed help over the past year to get food – for example, from foodbanks, friends, family or Work and Income – based on the survey results. The cost of living remains the highest concern for New Zealanders across all age groups and has for three years according to its Sentiment Tracker. Low confidence in government action The nationally representative survey shows most New Zealanders don't believe the government is doing enough to keep food affordable. Two-thirds of people (66%) said they have low confidence in current government policies, while just 9% expressed high confidence in government action. Distrust in supermarkets also rising These results provide valuable insights into more recent trends in public trust in supermarkets and the government, as shown in Consumer NZ's Sentiment Tracker. Source: Consumer Sentiment Tracker Shoppers also report limited or declining trust in supermarkets to price and promote products fairly — an issue that raises additional concerns about consumer protection. 'There's increasing discomfort with how data is being used in loyalty schemes, and whether the deals offered actually benefit the consumer,' Duffy says. Strong support for government regulation When asked in the Grocery Survey what could be done to keep food accessible, hundreds of respondents said food is simply too expensive and urgent action is needed. Many supported stronger regulation and clearer rules to stop misleading promotions, not just more competition in the sector. 'Consumers want the government to take a harder line — not only in promoting competition, but also in actively regulating how prices are set and how promotions are run,' says Duffy. Shoppers adapt to high costs Consumers are increasingly turning to cost-saving strategies, such as shopping around and buying in bulk, to deal with rising food prices and growing pressure on household budgets. More than half of respondents said they compare prices across supermarkets – most commonly through supermarket websites or apps, rather than in-store checks. This behaviour signals the need for unit pricing and easy price comparison across retailers. Loyalty programme perceptions are mixed Perceptions of supermarket loyalty programmes are divided. Nearly two in five consumers feel loyalty schemes offer little or no benefit, while around one in three see them as worthwhile. 'Consumers are rightly questioning the real value of loyalty programmes,' says Duffy. 'Our research found 84% of New Zealanders use loyalty cards, but the so-called 'specials' don't always reflect the lowest prices available at the checkout.' While the Commerce Commission has not recommended a full review of loyalty programmes, it has called on supermarkets to ensure transparency in how data is collected and used, and to clearly disclose the terms of these schemes. Time for action 'We are hearing loud and clear that shoppers feel unsupported and are losing trust – not just in supermarkets, but in the laws and systems that are meant to protect them,' Duffy says. 'To restore confidence, we need tougher regulation and greater enforcement to tackle pricing practices and market power in New Zealand's grocery sector.' Consumer NZ continues to push for measures that ensure fairer pricing, improved transparency, and increased competition in the supermarket industry. Note Consumer NZ surveyed 1,005 New Zealanders aged 18 and over online, between 10 and 15 April 2025 for the NZ Grocery Survey. The sample was provided by Dynata and reflects national population profiles based on Stats NZ data. The Consumer NZ Sentiment Tracker is a quarterly survey that explores the interests and concerns of New Zealanders. The nationally representative survey of 1,000 respondents is conducted every three months.
