Mortgage Stress, a community-based organisation in Victoria, has paused new intakes for all but the most urgent cases due to overwhelming demand, according to chief executive Nadia Harrison. She said the number of people reaching out for assistance doubled between January and August this financial year, the greatest demand the service has ever seen.
Ms Harrison attributed the surge to interest rate rises that reached a 15-year high on Tuesday, combined with increasing costs for insurance, groceries and fuel. She said more than half of the organisation's clients were employed rather than welfare recipients, with some seeking financial assistance for the first time.
"We service a cohort of clients who are at risk of homelessness, so to have a majority of clients that are employed, it shows that the problem is really extensive throughout the population," Ms Harrison said. She expects demand to keep building in coming months.
The National Debt Helpline has also seen a sharp increase in calls. In August, 4,153 people contacted the helpline, compared to 2,990 in the same month last year.
Meanwhile, data analytics firm Digital Finance Analytics identified several Melbourne growth corridors as among the areas with the most widespread mortgage stress across the country. Its analysis for the end of August, which defines mortgage stress as a household having more outgoings than income, listed Narre Warren, Cranbourne, Roxburgh Park, Pakenham and Ballarat as the five postcodes with the highest number of affected households in Victoria.