About the study
Money commissioned a survey of an independent panel of 1,018 Australian mortgage holders to determine their biggest financial worries, from a list of eight, and whether they will face significant challenges meeting their expenses and repayments this year.
Respondents were also asked whether the measures announced in the Federal Government budget earlier this year, such as the one-off $420 cost of living tax offset for low- and middle-income earners, would reduce their financial worries.
The pool of survey respondents matches the geographical spread of the Australian population.
What financial concerns are Australian mortgage holders facing?
Money asked Australian mortgage holders to identify their biggest financial worries from a list of eight. Respondents could select more than one response.
1
Concerns over meeting the rising cost of living came out on top (chosen by 61% of respondents)
2
Having a financial buffer in case of an emergency ranked second on the list – chosen by 43% of mortgagors
3
Having enough cash flow to pay bills, chosen by 39% of respondents, ranked third
4
Meeting healthcare costs, including private insurance, and being able to afford non-essential spending ranked an equal fourth, with 36% of respondents choosing these as their largest worries
5
Having adequate cash and assets to retire with ranked fifth, chosen by a third (33%) of mortgagors
6
The ability to meet mortgage repayments amid interest rate increases ranked sixth – chosen as one of the top concerns for 27% of respondents
7
Paying off other debts, such as credit cards, personal loans and car loans, ranked seventh – chosen by 22% of respondents
Concerns for under-35s and over-35s
Money found that financial concerns between under-35s mortgagors and over-35s differed markedly. Mortgage-related concerns was ranked highest among young mortgagors, after meeting the rising cost of living (which ranked first for all age groups).
This suggests that young borrowers took out a home loan recently, when house prices were at their peak, and may have borrowed the maximum amount.
Meeting the rising cost of living
Meeting the rising cost of living was chosen as a top concern for
- 63% of 18-34-year-olds
- 60% of over-35s
Meeting mortgage repayments
For under-35s, meeting mortgage repayments ranked second as a financial concern – chosen by 44% of respondents.
In contrast, this concern ranked sixth for over-35s mortgagers. This age group ranked ‘having a financial buffer in case of an emergency’ second in their list of concerns.
Having enough cash flow to pay bills
Under-35s and 35-49-year-olds ranked ‘having enough cash flow to pay bills’ third on their list of financial concerns – chosen by 40% of the former and 44% of the latter.
However, only 37% of over-50s chose this as a top concern, ranking it fourth.
Financial concerns across the states
Rankings across the states were similar to rankings across the full respondent pool. Meeting the rising cost living came out on top as the major financial concern in each state:
- 69% of WA mortgagors selected this concern
- 64% in SA
- An equal 60% in NSW and Victoria
- 57% in Queensland
Having a financial buffer in case of emergencies
This was ranked second across all states: this concern was chosen by:
- 50% of ACT mortgagors
- 46% of NSW mortgagors
- 45% in South Australia
- 43% in Western Australia
- 39% in Queensland
Having enough cash flow to pay bills
Having enough cash flow to pay bills ranked:
- Third in NSW and Queensland (chosen by an equal 39% of respondents),
- Victoria (chosen by 35%)
- Western Australia (41%)
- In South Australia this concern ranked an equal second with having an emergency buffer (each chosen by 45% of respondents)
- In the ACT it ranked fifth
Which are your biggest financial worries this year?
Response | Having enough cash flow to meet my bills |
|---|---|
NSW (%) | 39 |
VIC (%) | 35 |
QLD (%) | 39 |
SA (%) | 45 |
WA (%) | 41 |
ACT (%) | 33 |
Response | Meeting my mortgage repayments, with interest rates about to increase |
NSW (%) | 34 |
VIC (%) | 28 |
QLD (%) | 23 |
SA (%) | 22 |
WA (%) | 20 |
ACT (%) | 46 |
Response | Paying off other debts such as credit cards, personal loans, car loans |
NSW (%) | 23 |
VIC (%) | 19 |
QLD (%) | 27 |
SA (%) | 21 |
WA (%) | 21 |
ACT (%) | 25 |
Response | Meeting the rising cost of living (e.g. petrol prices, grocery prices) |
NSW (%) | 60 |
VIC (%) | 60 |
QLD (%) | 57 |
SA (%) | 64 |
WA (%) | 69 |
ACT (%) | 54 |
Response | Healthcare costs, including private health insurance |
NSW (%) | 38 |
VIC (%) | 33 |
QLD (%) | 38 |
SA (%) | 28 |
WA (%) | 39 |
ACT (%) | 42 |
Response | Having adequate cash and assets (such as a paid off property) to retire with |
NSW (%) | 36 |
VIC (%) | 29 |
QLD (%) | 33 |
SA (%) | 30 |
WA (%) | 37 |
ACT (%) | 17 |
Response | Having a financial buffer in case of an emergency |
NSW (%) | 46 |
VIC (%) | 40 |
QLD (%) | 39 |
SA (%) | 45 |
WA (%) | 43 |
ACT (%) | 50 |
Response | Being able to afford non-essential spending such as holidays, entertainment, gifts |
NSW (%) | 38 |
VIC (%) | 32 |
QLD (%) | 36 |
SA (%) | 44 |
WA (%) | 37 |
ACT (%) | 42 |
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) | ACT (%) |
|---|---|---|---|---|---|---|
Having enough cash flow to meet my bills | 39 | 35 | 39 | 45 | 41 | 33 |
Meeting my mortgage repayments, with interest rates about to increase | 34 | 28 | 23 | 22 | 20 | 46 |
Paying off other debts such as credit cards, personal loans, car loans | 23 | 19 | 27 | 21 | 21 | 25 |
Meeting the rising cost of living (e.g. petrol prices, grocery prices) | 60 | 60 | 57 | 64 | 69 | 54 |
Healthcare costs, including private health insurance | 38 | 33 | 38 | 28 | 39 | 42 |
Having adequate cash and assets (such as a paid off property) to retire with | 36 | 29 | 33 | 30 | 37 | 17 |
Having a financial buffer in case of an emergency | 46 | 40 | 39 | 45 | 43 | 50 |
Being able to afford non-essential spending such as holidays, entertainment, gifts | 38 | 32 | 36 | 44 | 37 | 42 |
What proportion of mortgagors will have significant challenges meeting their expenses and repayments this year?
Nearly half (48%) of Australian mortgagors admitted they would have significant challenges meeting all their expenses and repayments this year.
NSW affected the most
Money found more NSW mortgagors (52%) expected to face significant challenges meeting their expenses and repayments this year. Along with:
- 50% of Queenslanders
- 49% of Victorians
- 39% of South Australians
- 38% of WA residents
Do you think you will have significant challenges meeting all your expenses and repayments this year?
Response | Yes |
|---|---|
NSW (%) | 52 |
VIC (%) | 49 |
QLD (%) | 50 |
SA (%) | 39 |
WA (%) | 38 |
ACT (%) | 54 |
Response | No |
NSW (%) | 48 |
VIC (%) | 51 |
QLD (%) | 51 |
SA (%) | 61 |
WA (%) | 62 |
ACT (%) | 46 |
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) | ACT (%) |
|---|---|---|---|---|---|---|
Yes | 52 | 49 | 50 | 39 | 38 | 54 |
No | 48 | 51 | 51 | 61 | 62 | 46 |
Age as a factor
Money found that the younger the age group, the more likely they would struggle with meeting their expenses and repayments this year.
- More under-35s mortgagors (60%) expected to have these challenges
Compared with:
- 50% of 35-49-year-olds
- 44% of over-50s.
Missed repayments can have a negative impact on a person's credit score. Younger Australian tend to have a lower credit score to start off with on average.
What proportion of mortgagors think the measures announced in the Federal Government’s budget will reduce their financial worries?
Money also sought to find out how Government schemes would reduce financial worries for mortgage holders.
In March 2022, the Federal Government announced several measures, the majority of which came into effect in March and July this year, such as:
$250 one-off payment to six pensioners, carers, veterans, job seekers, concession cardholders and some self-funded retirees
One-off $420 tax offset for low and middle income earners
22c cut in fuel tax for six months, 20 weeks paid parental leave
$5,000 payments over two years for new apprentices as they complete their training in industries with skills shortages
Will it have an effect?
When asked whether these measures would reduce their worries:
- 49% of mortgagors said they would in the short term only
- One third (36%) said it would not ease their worries at all
- 15% revealed the measures would support them financially over the next year
How it compares state to state
More South Australian mortgagors (45%) than those in any other State admitted the proposed Government measures would not reduce their financial concerns at all
This is compared with:
- 35% of Victorians
- 31% of WA mortgagors
- 29% of those in the ACT
Will the Federal Govt measures announced in its 29 March Budget reduce any of your financial worries?
Response | Yes, but only in the short term |
|---|---|
NSW (%) | 48 |
VIC (%) | 51 |
QLD (%) | 50 |
SA (%) | 40 |
WA (%) | 53 |
ACT (%) | 58 |
Response | Yes, over the next year |
NSW (%) | 16 |
VIC (%) | 15 |
QLD (%) | 14 |
SA (%) | 15 |
WA (%) | 16 |
ACT (%) | 13 |
Response | No |
NSW (%) | 36 |
VIC (%) | 35 |
QLD (%) | 36 |
SA (%) | 45 |
WA (%) | 31 |
ACT (%) | 29 |
| Response | NSW (%) | VIC (%) | QLD (%) | SA (%) | WA (%) | ACT (%) |
|---|---|---|---|---|---|---|
Yes, but only in the short term | 48 | 51 | 50 | 40 | 53 | 58 |
Yes, over the next year | 16 | 15 | 14 | 15 | 16 | 13 |
No | 36 | 35 | 36 | 45 | 31 | 29 |
Under-35s feel the most relief short term
More under-35s mortgagors (56%) said the measures would reduce their concerns in the short term.
Compared to:
- 35-49-year-olds (48%)
- over-50s (46%)
