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Mortgage support service sees demand double after Australian rate rises

ABC's 7.30 report follows a Dandenong homeowner's tightening budget as an economist warns that weaker spending could tip Australia into recession.

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ABC News In-depth Story of November 8, 2026Trari Newsroom

Why this story? One of ABC News In-depth's most watched videos since yesterday, with 36,158 views.

Mortgage holders feeling the financial pressure after five rate rises | 7.30

Things we can learn from the video

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0:25Marcus Rechsteiner bought his Dandenong unit in 2021; his mortgage payments have reached $2,140 a month.
1:15Rate-decision footage shows the cash rate reaching 4.85%; Michele Bullock says higher rates are needed to reduce inflation.
2:28The report cites Roy Morgan research putting nearly a third of mortgage borrowers at risk of mortgage stress.
3:28Nadia Harrison says demand for Mortgage Stress Victoria's assistance has doubled since early in the year.
4:14Shane Oliver warns that weaker consumer spending raises the danger of Australia entering recession.

Marcus Rechsteiner bought his Dandenong unit when interest rates were low. In ABC's 7.30 report, the disability support worker describes a budget increasingly squeezed between mortgage repayments, everyday expenses and unexpected repair bills.

"When the interest rates rises go up, something's got to give," he says.

Mike Lorigan's report examines the household pressure following five rate rises, with Australia's official cash rate reaching 4.85%, according to the broadcast. It puts borrowers' experiences alongside the Reserve Bank's argument that higher rates are needed to bring inflation down.

"I know this is not the news that many Australians want to hear, but it is what's needed to get inflation down," Governor Michele Bullock says in footage included in the report.

At Mortgage Stress Victoria, chief executive Nadia Harrison describes demand for assistance doubling since early in the year. The service ordinarily hears from about fifty people a month; that has risen to roughly a hundred, she says. The report also cites Roy Morgan research indicating that nearly a third of mortgage borrowers are at risk of mortgage stress.

The concern extends beyond individual repayments. AMP chief economist Dr Shane Oliver warns that contracting consumer spending could push the economy into recession, and says his assessment of that risk has risen substantially since earlier in the year.

For Rechsteiner, the worry is both the next rate decision and the widening distance he sees between Australians who have financial breathing room and those who do not. He describes a growing "working poor" despite his efforts to keep up.

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