Australia’s housing market is showing signs of strain as mortgage stress continues to rise across the country. Recent data shows a growing number of homeowners are falling behind on repayments, with experts warning the full impact of recent rate hikes may not yet have been felt.

At the same time, many Australians are choosing to renovate rather than upgrade, as higher borrowing costs make purchasing a new home less attractive. Meanwhile, major banks have started increasing fixed mortgage rates, signalling expectations that interest rates could remain elevated for longer.

Combined with weaker consumer spending and ongoing cost-of-living pressures, homeowners and borrowers may need to focus more than ever on managing cash flow and reviewing their lending strategies.