Mortgage Stress

When you are calculating how much you can afford to borrow, bear in mind that if mortgage repayments take up over 30 percent of your income, you will be under mortgage stress. The 30 percent figure is estimated by the Australian Bankers Association and can be used as a general rule for determining if you are under mortgage stress. It is best to try and keep under the 30 percent mark when applying for a home loan because if interest rates increase, then your level of mortgage stress will also rise. By making larger repayments than the minimum requirement, you can alleviate mortgage stress in the event of an interest rate rise as your debt will be reduced.

The table below displays today's lowest variable rate home loans from banks only.

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