Mortgage stress hits mental health three times harder than other debt
A University of Melbourne study found mortgage holders paying over 30% of income on housing face mental health decline roughly three times worse than others under financial strain.
Researchers analysed 13 years of national household data. They tracked 18,750 Australian adults.
The study compared three periods: pre-2015, COVID years, and 2022 onwards. During COVID, high-mortgage households showed no sharp mental health drop.
But in 2023 and 2024, as interest rates climbed and savings buffers ran dry, hardship spiked sharply. Emily Knights is a 34-year-old nurse in Geelong.
She now pays around 50% of her wage towards her mortgage after her separation. The full debt fell to her alone.
She describes constant anxiety. She overthinks and ruminates over her budget.
The study was published in the journal Social Science & Medicine on Friday.
- 13 years of national household data
- Study period
- 18,750 Australian adults
- Participants tracked
- roughly 3 times worse
- Mental health decline multiplier
- Social Science & Medicine journal, Friday
- Published
Why it mattersAustralians with variable-rate mortgages face a real mental health crisis as rates stay high and savings dwindle.
AustraliaHundreds of thousands of Australian mortgage holders are experiencing severe anxiety as higher interest rates consume larger shares of household income.
✓ Claims checked against the source and corrected before publish. checked 7 d ago
