What banks are doing for borrowers in mortgage stress | The Business | ABC NEWS

The Reserve Bank's interest rate rise is tipping more Australians into financial distress, with calls about people missing mortgage repayments now making up a greater portion of calls to the National Debt Helpline. Calls and chats to the National Debt Helpline reached 187,905 in the 12 months to the end of August 2026, up 11.76 per cent from 168,133 over the same period the year before, with a greater portion coming from people unable to make mortgage repayments or at risk of arrears.

The latest interest rate hike has been passed on by all four big banks, hitting variable home loans on Friday, November 13.

More than 1.82 million borrowers could be in mortgage stress after the Melbourne Cup Day rate rise, according to Roy Morgan data. On Monday, Westpac reported it offered 42,000 financial hardship assistance and disaster relief packages during the year. Commonwealth Bank recently revealed in its financial results that the lender had "provided more than 147,000 tailored payment arrangements for customers in need of support".

Australian Banking Association chief executive Simon Birmingham said "the key message for any households or small businesses at present is don't tough it out on your own. If you're worried you may not be able to meet future repayments, talk to your bank early." Banks are stepping up monitoring of accounts, looking for signs of stress but Mr Birmingham said "every option comes with consequences, to move to interest only or restructure the length of a loan could mean that it takes a bit longer to pay it off. And so all of those considerations need to be weighed up." After five interest rate rises this year economists expect the Reserve Bank could now hold fire. It could be well into next year, or beyond, before rate cuts are on the agenda. AMP deputy chief economist Diana Mousina said, "I don't think the Reserve Bank will need to raise rates again, but the risk around interest rates is still to the upside rather than to the downside."
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Read more here: https://www.abc.net.au/news/2026-11-04/interest-rates-putting-pressure-on-stressed-households/107340456

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