💡 Good news for Aussie borrowers!
Mortgage stress has been one of the biggest financial concerns for households over the past few years. But the latest figures from APRA (the Australian Prudential Regulation Authority) show that fewer Australians are falling behind on their home loans – and that’s a welcome shift.
In June 2024, the share of mortgages running 30–89 days late sat at 0.66%. Fast forward to June 2025, and that figure has dropped to 0.55%. Put simply, more than 99 out of 100 borrowers are up to date with their repayments. ✅ That’s a huge vote of confidence in how households are managing their budgets, especially after a period of rising rates and cost-of-living pressures.
Why Are Things Improving?
Lower interest rates in 2025 have clearly played a role in easing repayment pressure. Many borrowers are now using this breathing space to get ahead on their loans or stabilise their household budgets. After years of financial strain, the combination of relief and discipline is showing up in the numbers.
How Borrowers Are Approaching New Loans
APRA’s data also reveals how Australians are thinking about their borrowing strategies:
🏡 Bigger deposits – Almost 70% of new borrowers (69.6%) put down at least a 20% deposit in June 2025, up from 68.1% the year before. This shows a growing preference for reducing risk and building equity from the start.
💰 Borrowing big – On the other side, 5.5% of new loans had a debt-to-income ratio of six times or more, up from 5.0% in 2024. This reflects a group of borrowers who are stretching their limits to maximise buying power in a competitive housing market.
This mix highlights two very different approaches: some Australians are prioritising security and long-term stability, while others are focused on getting into their dream home now, even if it means higher leverage.
What This Means for You
If you’re a current homeowner, these trends are encouraging – they show that borrowers are adapting to market conditions and finding ways to stay on top of their finances. For potential buyers, the landscape offers both opportunities and challenges: more stability in repayments, but also a market where some buyers are still prepared to push borrowing limits.
Ready to Plan Your Next Step?
Whether you’re considering your first home, refinancing to take advantage of lower rates, or just reviewing your loan strategy, now’s a great time to get advice. Every borrower’s situation is different, and having a clear plan can help you balance safety with opportunity.
📲 Thinking about your own loan strategy? Let’s chat – we can help you make the numbers work for your goals.
