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Home › Reports › Mortgage Stress Report — Q1 2026

Mortgage Stress Report — Q1 2026

Financial pressure is spreading beyond outer-suburban growth corridors into Australia’s most established, higher-income suburbs.

Published 19 May 2026 · OurTop10 Research, powered by Digital Finance Analytics (DFA)

54
capital-city postcodes with rising general stress
16
postcodes with rising severe stress
41
postcodes with higher default risk
Cite this report — the canonical source link:

https://ourtop10.com.au/reports/mortgage-stress-q1-2026/

Download the full report (PDF)

Media & data enquiries: contact the OurTop10 research team. Full methodology and the complete postcode dataset are available on request.

Key findings

Mortgage stress is no longer concentrated in lower-income areas. Sydney recorded the highest concentration of increases of any capital city — all 10 of its top-ranked postcodes for general stress rose in Q1 2026, and six of its top 10 for severe stress also rose. Brisbane and South East Queensland emerged as the fastest-growing mortgage default-risk market in the country, with eight of the region’s top 10 postcodes worsening over the quarter.

Worst-hit postcodes — Q1 2026

Postcode State Suburbs Key finding
2066 NSW Lane Cove, Northwood, Riverview, Longueville, Linley Point +208% severe stress (largest nationally); stressed households 749 → 2,306
3163 VIC Carnegie, Glen Huntly, Murrumbeena +1,024% severe stress year-on-year (Melbourne’s southeast)
4207 QLD Yatala, Beenleigh, Bahrs Scrub, Bannockburn +73.3% default risk; +33.5% general stress; 3,598 → 4,802 households
4551 QLD Caloundra, Baringa, Kings Beach, Pelican Waters +33% mortgage stress
3030 VIC Point Cook, Werribee, Wyndham +51.4% mortgage stress
6160 WA Fremantle +175% severe stress (2nd largest nationally)
5158 SA Hallett Cove, O’Halloran Hill, Sheidow Park, Trott Park +15.5% general stress; 2,489 → 2,875 households

Source: OurTop10 Mortgage Stress Report Q1 2026, compiled with Digital Finance Analytics (DFA).

Expert commentary

“For years, mortgage stress has largely been associated with outer suburban growth corridors and lower-income borrowers. What we’re now seeing is pressure building in established, higher-income suburbs where households are carrying much larger debt levels.”— Mansour Soltani, Research Advisor, OurTop10
“A growing number of households are having to make difficult spending decisions simply to stay on top of repayments. Many built their financial position during a period of ultra-low interest rates. That environment has changed rapidly.”— Martin North, Principal, Digital Finance Analytics

Methodology

Data compiled by Digital Finance Analytics (DFA) across postcodes nationwide. “Mortgage stress” is defined as households merely breaking even after mortgage and living expenses; “severe stress” as households losing at least 5% of their income each month. Full methodology and sample sizes are available on request.

Featured coverage

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