A new survey from Compare the Market has found that 12% of Australians are behind on mortgage home l

With another interest rate rise tipped for Tuesday, a survey from Compare the Market has revealed that 12 per cent of Aussies were behind on their mortgage repayments in August.

But, according to an earlier Compare the Market survey, in March this year only seven per cent of homeowners said they had missed a repayment in the past year.

The latest figures show how the financial plight of Aussie homeowners has worsened in the past six months.

Millennials are the generation most likely to be behind on their mortgage repayments, followed by Gen X.

Across the country, NSW homeowners are struggling the most to meet their home loan repayments followed by homeowners in Victoria, Queensland and South Australia.

Compare the Market research lead Chris Ford told news.com.au the number of Aussies behind on their mortgages was “very alarming” and would be “a key consideration for the RBA next week”.

“Another rate rise could really push us to the brink,” Mr Ford said.

But despite the widespread financial pain, the Reserve Bank of Australia (RBA) is widely tipped to raise interest rates when it meets next Tuesday, with 33 out of 35 economists surveyed by The Australian Financial Review tipping a rate rise of 0.25 per cent, which would bring the official cash rate to 4.35 per cent.

Higher than expected inflation figures for the September quarter and stronger than forecast retail sales growth are to blame, as both indicate that Aussies are still spending too much.

But the Compare the Market survey reveals that much of that spending could be taking the form of Aussies taking on more debt.

It found that 69 per cent of us have some type of debt, such as credit card or mortgage debt, personal or informal loans, or buy now, pay later debts.

The survey found that 39 per cent of Australians have credit card debt, 17 per cent owe money to buy now, pay later providers, 10 per cent are paying off a personal loan or car finance, and eight per cent are in debt to a family member or friend.

The financial woes facing Australians don’t end there; the latest survey also found that 10 per cent owe money to a utility retailer.

And despite accumulating healthy savings during the pandemic, the cost of living crisis has also taken a toll on the savings of Aussies.

More Coverage

The survey also found that 29 per cent of Aussies have no savings buffer – raising questions as to how they will cope if the cost of living continues to rise.

The group found to have the lowest amount of savings were Gen X, with 38 per cent saying they have no savings in the bank.

By contrast, just 23 per cent of Baby Boomers said they have no savings in the bank, followed by 27 per cent of Millennials and 29 per cent of Gen Z.

ncG1vNJzZmivp6x7r7HWrGWcp51jrrZ7xaKlmqaTmnymr86npqaxX567tbHRnqqtZaKWwaa%2FjmppZqeWYq62v9KinKxlkpq1qrrDZqanZZikuqZ5y6iYp2Wimr2ixcyepa2rX6OyuL%2BMrKuoqqlksKJ%2FkG2anWyRlrNxrZVybXJwkZawprDEbJ1tbJZqf3g%3D