All Victorians are now able to access free support with their home loan repayments through Mortgage Stress Victoria following a successful pilot. 

The service connects homeowners with financial counsellors, lawyers, and social workers offering tailored support, whether they’ve missed repayments or are facing repossession

Mortgage Stress Victoria was initially trialed in Melbourne’s western suburbs, where it helped prevent more than 190 home repossessions.

"Many of our clients cannot make ends meet and face eviction from home ownership straight into homelessness," the Mortgage Stress Victoria website reads.

The service argues that mortgage holders often aren't eligible to receive help from other support services due to owning their home, whether or not they hold substantial equity.

"Mortgage Stress Victoria offers more than just financial advice - it's a lifeline for people's wellbeing, their futures, and their peace of mind," Victorian Attorney-General Jaclyn Symes said.

"A house is more than a roof over someone's head - it's their home."

To qualify for support, applicants must live in their mortgaged property, not own additional properties, have a household income of $75,000 or less, or be experiencing family violence.

Around a third of those helped by the service during its pilot period were victim-survivors of family violence.

Mortgage Stress Victoria offers remote appointments, and can provide in-person support from its Melbourne office.

If you're ineligible for the service, you might consider reaching out to the National Debt Helpline (1800 007 007) and, if mortgage stress is impacting your mental health, support is also available through Beyond Blue.

Mortgage stress eases despite stubborn interest rates

Research from Roy Morgan found mortgage stress among Australians has fallen in recent months, dropping 4% since June.

Just over 26% of home loan holders were found to be at risk of mortgage stress as of October.

Further, the Reserve Bank of Australia noted the portion of household income spent on mortgage repayments slipped slightly in the September quarter.

The RBA put much of the shift down to expiring fixed rate home loan periods and the state 3 tax cuts, with Roy Morgan also attributed the improvement to rising incomes.

"While debt payments are high, nearly all borrowers are expected to be able to service their debts even if inflation and interest rates remain high for an extended period," the RBA's latest Statement on Monetary Policy reads.

Mortgage Stress Victoria's extension comes just one day after the RBA board chose to keep interest rates at their 13-year high for the remainder of 2024.

The next opportunity to lower rates will be in February 2025, with most economists predicting the cash rate will experience its first cut since 2020 in the first half of the new year.

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