Over 300,000 mortgage holders with no equity in home

article header

A new study has found that over 300,000 mortgage holders around the country have no real equity in their homes, identifying a problem area for our debt-obsessed nation.  

Released by Roy Morgan Research, the findings show the risky nature of some loans that are equal to or higher than the value of the property they are secured against.

Western Australian’s are most at risk of falling in to this category with 9.2 per cent of mortgage customers having home values less than or equal to the amount owed. This is an increase from the 2012 figure of 8.1 per cent.

New South Wales, with its ever increasing property prices, had the least amount of customers in this category at only 5.1 per cent. This shows an improvement on the 2012 figure of 7.6 per cent and is a sign of the state’s strong property market.


Value of home is less or equal to amount owing Value of home is less or equal to amount owing. Source: Roy Morgan.


In every state, these high risk borrowers were more likely to have a home valued well under the overall median property price and to be on a lower income.


Mortgage holders with home value less or equal to amount owing vs all mortgage holders Mortgage holders with home value less or equal to amount owing vs all mortgage holders. Source: Roy Morgan.


“With over 300,000 home borrowers having no real equity in their homes, this represents a considerable risk, particularly if home values fall or households are hit by unemployment,” said Norman Morris, Industry Communications Director, Roy Morgan Research.

“In addition if home-loan rates rise, the problem would be likely to worsen as repayments would increase and home prices decline, with the potential to lower equity even further.”

Source: Graphs and research by Roy Morgan Research


^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

Compare your product with the big 4 banks, or add more products to compare
As seen on