New report finds millions of borrowers under significant financial strain from home loan costs
More than two-fifths of Australian mortgage holders are dedicating at least 40% of their after-tax income to home loan repayments, according to new research from Finder.
The findings come from the price comparison website's 2026 Home Loan Report, which draws on data from the company's July 2026 Consumer Sentiment Tracker — a nationally representative survey of 1,010 Australian adults, including 291 current mortgage holders and 619 homeowners in some form.
The report found that 43% of mortgage holders, equivalent to approximately 1.4 million people, spend at least 40% of their take-home pay on monthly repayments.
Nearly one in three borrowers (29%) report directing more than half of their post-tax income to their home loan. On average, mortgage holders allocate 38% of their income to repayments.
What percentage of your take-home pay (income after tax) goes towards your mortgage each month?
| Income share on mortgage | Share of borrowers |
|---|---|
| Less than 10% | 11% |
| 10% – 19% | 10% |
| 20% – 29% | 18% |
| 30% – 39% | 18% |
| 40% – 49% | 14% |
| 50% or more | 29% |
| Average | 38% |
Source: Finder's 2026 Home Loan Report
Generational differences were also notable. Millennials reported the highest repayment burden, spending an average of 41% of take-home pay on their loans, compared with 36% for Generation X and 30% for baby boomers.
Only one in five homeowners (21%) said they spend less than 20% of their income on mortgage repayments.
"When your home loan is consuming close to half your take-home pay, it leaves very little room for anything else," said Richard Whitten (pictured right), home loans expert at Finder. "There's simply less money left to build savings, invest or cope with unexpected expenses."
Whitten added that borrowers should not assume their current loan terms are fixed. "If your mortgage is eating up too much of your income, it's worth reviewing your home loan," he said.
"Refinancing to a lower rate, negotiating with your lender, or finding a more competitive loan could reduce your repayments and free up thousands of dollars over the life of your mortgage."
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
