THE HEADLINE
More than half of Australian mortgage holders are spending more than 30% of their take-home pay on repayments – the traditional threshold for mortgage stress. 44% either expect to still be paying, or are already paying, their mortgage in retirement. At the front of the pipeline, the pathway onto the property ladder now runs through the bank of Mum and Dad: two-thirds of Gen Z buyers received some form of family help, compared to just one in ten Boomers.
Home ownership remains a major life milestone for Australians, but in 2026 it's also an increasingly challenging one. Finder's 2026 Home Loan Report finds that this is true not just for Australians hoping to enter the property market, but also for many borrowers who already own homes. It's a story of unaffordability, mortgage stress and rising interest rates. It's also a story of gender and generational inequality.
The report draws on Finder's July 2026 Consumer Sentiment Tracker, a nationally representative survey of 1,010 Australian adults, 291 of whom currently hold a mortgage and 619 of whom own their home in some form.
Throughout, we've called out the biggest gaps by generation and gender, and income level.
Key statistics
A snapshot of how Australians are buying homes, affording their mortgages and living with debt in 2026.
of mortgage holders spend more than 30% of their take-home pay on repayments – the traditional mortgage-stress threshold
is the mean share of take-home pay going to mortgage repayments – rising to 41% for Gen Y
either expect to still be paying, or already are paying, their mortgage in retirement
of Gen Z home buyers received some form of family help – vs just 11% of Baby Boomers
of mortgage holders cannot switch to a better loan today for reasons beyond their control
believe they couldn't save anything by refinancing – including 41% of women vs 30% of men
of Australians with debt have cut discretionary spending or essentials because of higher interest rates
of Gen Z say they feel societal pressure to buy a home – the highest of any generation
SECTION ONE
Getting on the ladder
The struggle to buy a home in Australia today starts at the very beginning. Australians report feeling pressure to enter the market, and often make major sacrifices to afford it. And if help arrives, it often comes in the form of family assistance via the so-called Bank of Mum and Dad.
Pressure to purchase
Nearly half of Australians surveyed in this report (47%) have already bought a property and say they never felt pressure to do so. One in five (19%) say they'll never purchase. But for those who do feel pressure to purchase a property, there's a stark generational divide: 72% of Baby Boomers bought without any pressure, compared to just 25% of Gen Z. And 21% of Gen Z feel pressure from society, seven times the rate among Boomers.
Bought without feeling any pressure, by generation
Source: Finder survey of 1,010 Australian adults, July 2026
Breaking this down by gender reveals a deeper divide. Only 41% of women say they've purchased without pressure, compared to 53% of men. And 26% of women say they'll never purchase, which is twice the rate of men (13%).
Purchased without pressure vs "will never purchase", by gender
Source: Finder survey of 1,010 Australian adults, July 2026
Deposit sacrifices
Asked what they'd sacrificed to save a home deposit, 28% say they didn't need to make any sacrifices – the largest single group. Another 25% say they've never saved for a deposit and don't plan to.
But plenty of home buyers are making big sacrifices to enter the market. 27% say they've had to cut back on discretionary spending, while 13% have worked a second job. 8% have taken the step of moving back in with their parents to save money.
What Australians sacrificed to save a deposit
Source: Finder survey of 1,004 Australian adults, July 2026
Again there's a stark gender gap underneath these figures. 34% of men say they didn't need to make any sacrifices, compared to 23% of women. 31% of women say they've never saved for a deposit and don't plan to, versus 19% of men.
The First Home Guarantee is still a big help for first home buyers.
The federal First Home Guarantee lets eligible buyers purchase homes with as little as a 5% deposit, while also avoiding the additional cost of Lenders Mortgage Insurance (LMI). This is an extra cost buyers with small deposits often have to pay, and avoiding it typically saves buyers around $10,000 to $40,000 in upfront costs.
If you're a higher-income earner who doesn't qualify for this scheme, it's worth asking your lender about any LMI waivers for professionals. Sometimes medical, legal, accounting and engineering professionals can often get an LMI waiver at 90% LVR, letting them buy with a 10% deposit while avoiding LMI.
The Bank of Mum and Dad
Family help is now the primary difference between generations of Australian home buyers. Among home owners, 89% of Baby Boomers say they received no outside help. Among Gen Z owners that figure is just 33% – meaning 67% got family help in some form. Gen Y owners sit in the middle at 46%.
Received no family help getting on the ladder, by generation
Source: Finder survey of 619 Australian home owners, July 2026
The type of help has changed too. Among Gen Z homeowners, the most common form of "help" is a family member paying for the home outright (24%), followed by whole-deposit contributions (19%) and going guarantor (19%).
Needing more financial support from family is an inevitable result of property prices rising well above average incomes. But it isn't just a symptom of the problem. The Bank of Mum and Dad, who has access to it and who doesn't, further entrenches housing inequality.
Family support is safer with a contract.
Family gifts and guarantees carry legal and tax consequences first-time buyers rarely think about. A parental guarantor is jointly liable for the loan if the buyer can't repay it. A gift of money needs to be documented as a gift (not a loan) for lender-serviceability calculations. If parents are lending their children money, drawing up a contract is very wise.
Before accepting family help, sit down with a solicitor and a financial adviser. A one-hour consultation now costs $200–$400 and might save years of family friction.
SECTION TWO
Affording the mortgage
While saving the deposit is a heavy burden for new Australian home buyers, once a property is secured a new challenge begins: repaying an enormous mortgage. A great many Australians live with mortgage repayments so high they could be considered mortgage stress. And once again, the generational and gender disparities are incredibly revealing.
How mortgage holders describe their affordability
Among the 291 current mortgage holders in our sample, only 34% say they can "comfortably afford" their repayments. A further 39% can afford their repayments but say they don't have much wiggle room. More than 1 in 4 (27%) are financially stressed by their loan today.
How mortgage holders describe affording their repayments
Source: Finder survey of 291 Australian mortgage holders, July 2026
And once again there's a significant gender disparity in favour of men. 40% of men say they can comfortably afford their mortgage, compared to just 29% of women. Conversely, 30% of women are "just scraping by" compared to 18% of men.
of men comfortably afford their mortgage
of women comfortably afford their mortgage
How much of your take-home pay goes to the mortgage?
The burden of home loan repayments becomes clear once you ask Australian borrowers how much of their take-home pay goes to their loan. The average is 38% and the median is close at 35%. Either way, the Australians we surveyed spend well above the traditional 30% threshold on their mortgage repayments.
More than half (55%) spend more than 30%; around 30% spend more than 40%; and roughly 12% spend more than half. Mortgage stress is the default state for many.
Mean share of take-home pay on repayments, by generation
Source: Finder survey of 286 Australian mortgage holders (numeric response only), July 2026
Baby Boomers spend an average 30% of their take-home pay on their mortgage repayments, while the average Gen X spends 36%. Most alarmingly, the average Gen Y mortgage holder spends 41% of their take-home pay on their loan repayments.
The 30% stress threshold is a signal, not a diagnosis.
The "30% of gross income" rule of thumb was developed in the 1980s when interest rates, incomes and property prices were very different. It's clear today that many people have no choice but to spend well above this threshold just to repay their loans.
For people on higher incomes, spending more on your loan is less of an issue if you're able to meet all your other expenses comfortably. And a more practical check is to ask yourself: can you cover three months of full repayments if one household income disappeared?
If not, your buffer is too thin. Building even a modest savings buffer of one or two months' repayments meaningfully reduces the risk of default from a single life event like serious illness or job loss.
How higher interest rates have hit household finances
Rising interest rates have been a major story in 2026. Across all Australians, 60% report changing their financial behaviour in response to higher interest rates.
Behaviour change in response to higher interest rates (all adults)
Source: Finder survey of 1,008 Australian adults, July 2026
66% of Boomers say rates don't affect them (no debt), while only around a quarter of Gen Y and Gen Z can say the same. About a third of younger Australians are absorbing the interest-rate cycle by cutting spending on food and utilities.
This generational disparity highlights how interest rate rises, as a major policy tool to combat inflation, disproportionately affect younger borrowers. These are the people most likely to have large mortgage balances and less equity. Boomers, who may own their homes outright or have small loans, are much less affected by higher interest rates.
SECTION THREE
Living with debt
The reality of home ownership today means many Australians will live with mortgage debt into retirement. But many are planning to repay their loans early, and rising property prices mean greater access to equity.
Accessing home equity
Among the 619 property owners in our sample, 78% have not accessed any home equity in the past 12 months.
Home equity accessed in the past 12 months, and what for
Source: Finder survey of 619 Australian home owners, July 2026
Payoff goals and timelines
41% aim to pay off their loans early but not aggressively, and 34% want to be mortgage-free as soon as possible.
When mortgage holders expect to be mortgage-free
Source: Finder survey of 291 Australian mortgage holders, July 2026
Mortgage debt into retirement
Only 55% of mortgage holders expect to have their loan paid off before they retire. Combined, 44% of Australian homeowners are either planning to retire with mortgage debt or have already done so.
Will you pay off your mortgage before retirement?
Source: Finder survey of 291 Australian mortgage holders, July 2026
Income shapes the outcome dramatically: 76% of mortgage holders earning over $200,000 expect to be paid off before retirement, versus just 25% of those earning under $50,000.
of those earning over $200,000 expect to be paid off before retirement
of those earning under $50,000 expect the same
Retiring with mortgage debt requires a plan.
If it looks like you'll retire before paying off your home loan, make a plan. Consider increasing your home loan repayments now, while you're still working. Every extra dollar you repay now speeds up your loan's end date. Make sure you factor how your loan repayments will affect your retirement age and lifestyle, and work out how you'll afford the repayments once you've stopped working.
It's also worth thinking about downsizing your home. A smaller home could result in a smaller mortgage, or no loan at all. And there's the government's downsizer contribution scheme. This lets eligible Australians aged 55+ contribute up to $300,000 (or $600,000 per couple) into super from the sale of their home, tax-free.
SECTION FOUR
The switching problem
At a time when Australians have to borrow more to buy a home, while also dealing with rising living costs and higher interest rates, it's much harder to switch home loans. This puts borrowers at a disadvantage as it becomes harder to refinance to a better deal.
Can you actually switch?
Only 45% of mortgage holders say they could switch to a better home loan today. Combined, 54% cannot switch for reasons largely outside their control, which effectively puts them in "mortgage prison."
Could you switch to a better home loan today?
Source: Finder survey of 291 Australian mortgage holders, July 2026
"I could switch today" – by gender and by income
Source: Finder survey of 291 Australian mortgage holders, July 2026
There is a 27-point gap between men and women on the issue of mortgage prison, the highest gender gap in the report.
Unsurprisingly there's a wealth disparity here too: only 12% of high-income earners cite income/expenses as a barrier to switching, versus 45% of the lowest earners.
Don't assume you can't refinance – talk to a broker first.
"I don't think I could refinance" is one of the most expensive assumptions in Australian household finance. Bank borrowing power calculators are simple estimates, and every lender has different criteria.
A mortgage broker will run your profile through 20+ lenders, at no cost to you. And even if you're not eligible for a new loan, a broker can show you where you're falling short and even suggest changes you could make to improve your chances in the near future.
How much do borrowers think they could save?
35% of mortgage holders believe they couldn't save anything at all by refinancing. Only 11% think they could save $500 a month or more, and just 7% think they could save over $1,000 per month.
Perceived monthly saving from refinancing
Source: Finder survey of 291 Australian mortgage holders, July 2026
41% of women believe they couldn't get a better deal, compared to 30% of men. And 57% of Boomers say they couldn't refinance to save, compared to just 27% of Gen Z.
What would make you leave your lender?
When asked what would motivate them to switch loans, 57% cite getting a lower interest rate, making this by far the strongest motivator.
What would make you leave your current lender?
Source: Finder survey of 291 Australian mortgage holders, July 2026
People who say they wouldn't switch varies significantly by age: 51% of Baby Boomers say they wouldn't switch, compared to only 7% of Gen Z. This may signal a generational attitude against switching and in favour of bank loyalty, but it may also be evidence that older borrowers have much less need to refinance in the first place.
Get a home loan health check every 12 months.
A home loan health check means comparing your current rate against the best available rate for a borrower with your LVR, income and property profile. It takes 10 minutes with a broker, or you can use a tool like Finder's home loan comparison table.
Even a 0.5% rate reduction on a $500,000 loan saves roughly $150/month, which is $54,000 over the life of a 30-year loan. On a $1 million loan, the savings roughly double.
Cashback offers can make refinancing even cheaper.
In 2026 the average home loan cashback for eligible refinancers was about $2,000–$4,000, depending on lender and loan size. A cashback like this can cover your switching costs and put extra money in your pocket.
Before you commit, run the numbers to figure out the total cost. Let's say a lender offers you $3,000 to switch. Subtract the possible costs, like a mortgage discharge fee, registration fee, and loan application fee. And above all, make sure the new loan has a lower interest rate. That will save you more money than a one-off cashback.
References, methodology & contact
References
This report draws on Finder's July 2026 Consumer Sentiment Tracker, in particular the Home Loan module (survey questions Q17–Q29 of the July 2026 wave). Threshold references reflect Australian regulatory settings current as of July 2026.
Methodology
The July 2026 Consumer Sentiment Tracker ran in early July 2026 and collected 1,010 responses from Australian adults aged 16 and over. Some Home Loan questions were routed only to specific subgroups: current mortgage holders (n = 291), home owners (n = 619), and all respondents (n ≈ 1,004–1,010).
Generation bands follow standard Australian definitions: Baby Boomers (1946–1964), Gen X (1965–1980), Gen Y / Millennials (1981–1996), and Gen Z (1997–2012). Multi-select questions are reported as the percentage of respondents selecting each option, so totals exceed 100%.
The survey was verified as nationally representative for age, gender and state distribution against Australian Bureau of Statistics population data.