RBA Deputy Governor Reports No Systemic Mortgage Stress in Australia

Reserve Bank of Australia Deputy Governor Andrew Hauser stated that while some Australian households face hardship from higher interest rates, there is no systemic mortgage stress. He noted that approximately 2% of variable-rate owner-occupiers have a cash-flow shortfall, a figure lower than the 2024 peak, and less than 1% are in negative equity. This assessment, supported by the RBA's Financial Stability Review, suggests the Australian financial system remains resilient despite individual challenges.