New national consumer research released today by AMP Bank has found 7 out of 10 (69 per cent) Australian mortgage holders are worried about meeting their mortgage repayments now and if interest rates continue to rise, but the majority aren’t seeking available help or relief.

Those aged between 25 and 44 are particularly feeling the pinch, with 80 per cent of this group worried further rate rises will lead to them not being able to make their repayments. For older Australians aged 65 years and over, 44 per cent said they are worried now and by the prospect of further rate increases.

The national research found that many of those mortgage holders classed as having a small safety net, a savings buffer of three or less months of their mortgage repayments, had not yet sought assistance from their lender. Almost three quarters (73 per cent) of those mortgage holders had not contacted their lender to ask for a more competitive rate or other support. 39 per cent said this was because they believed they’d be able to make ends meet, while 29 per cent hadn’t contacted their lender because they didn’t believe they could help them.  

Other key findings include:

•  31 per cent of all Australian homeowners are worried about meeting their mortgage repayments right now, an increase of eight percentage points from February this year (23 per cent).
•  Three quarters (76 per cent) of all homeowners have made changes to their spending habits due to rising interest rates. This proportion is 86 per cent among those who have children under 18 at home.
•  Half of Australian mortgage holders don’t believe they can do more to curb spending, in order to meet current or expected rising costs of their mortgage. Older Australians over 65 years are especially vulnerable, with two thirds (66 per cent) responding that they are unable to do more. 

Sean O’Malley, AMP Bank Group Executive said:

“We encourage homeowners who are worried about meeting repayments to talk to their bank or broker to understand their options, and to utilise the resources and help available through their bank.

“It’s concerning to us that there are a large number of people in the community who are doing it tough who haven’t contacted their bank or broker to seek assistance or look for a better rate.

“Reassuringly, we continue to have very low numbers of AMP Bank home loan customers in arrears and over 40 per cent of AMP Bank’s mortgage book remains more than three months ahead of schedule on repayments.

“We proactively reach out to customers who may be at risk of financial stress and have a dedicated hardship team available for those concerned about their financial position to talk through options, for example temporary relief arrangements, interest rate changes, referral to expert assistance with budgeting, and as appropriate amendments to their loans or restructuring.

“Australians who are concerned about rising interest rates don’t need to go it alone – there is help available, and there are a range of measures that their banks can also look at.”

Tips for managing financial wellbeing 

1. Find your bearings: Start by learning what impact the increasing interest rates are having on you, how it impacts your mortgage, and what you can do about it. Helpful resources are often available on lenders’ websites, and budget/tracking apps can provide a clear view of your spending patterns. Some examples include AMP’s website, budget planner calculator and expense planner calculator, and ASIC’s MoneySmart tools.

2. Check your home loan is right for you: There are a range of home loan products on the market which come with different features based on customers’ preferences, needs and eligibility. Consider what loan options best suit you and your individual circumstances.

3. Get assistance when you need it: There’s plenty of research showing that people who draw on expert advice are less financially stressed and make better decisions. Use reputable sources such as your financial institution, government resources, and trusted third-party comparison websites.

4. Contact your bank or talk to your broker for specialised help: Most banks have dedicated financial wellbeing support available for customers.

How AMP Bank supports home loan customers 

AMP Bank has strengthened its resourcing to help support customers’ financial resilience. This includes:

• A new ‘Financial Resilience hub’ on AMP’s website, explaining why rates are increasing, how to make the most of your home loan and providing helpful budgeting, tools and links.  
• New training rolled out for customer-facing staff which describes different situations customers may be in, the support options available, and which teams can help. 
• Improvements to customer communications to encourage customers to reach out for help if they’re worried about their finances, and also to be more accessible for customers who may have challenges when they call us such as hearing impairments or who are linguistically diverse.
• Proactively contacting customers who may be at risk of financial stress, encouraging them to contact us if they need help.

A dedicated hardship team is available for customers concerned about their financial position to talk through options, for example temporary relief arrangements, interest rate changes, referral to expert assistance with budgeting, and as appropriate amendments to their loans or restructuring.

AMP Bank home loan customers should call 13 30 30. 

¹ AMP Bank commissioned Dynata to conduct an online survey of the Australian population 18 years and over who currently hold a mortgage. Data from more than 1,000 respondents was collected in June 2023. The survey was nationally representative and conducted to understand the impact of rising interest rates, and the level of engagement Australian homeowners have with their mortgages.

The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517.