Startling new figures tell the story of the real impact on Australians directly due to ten consecutive interest rate rises over the past year, and the effects are not just financial.

Australia’s peak finance and mortgage broker body, the Finance Brokers Association of Australia (FBAA), has released the 2023 ‘Australian mortgage and rental affordability survey’ conducted by respected research firm McCrindle.

It found a large percentage of Australians with a mortgage and who are renting are struggling and are being forced to cancel holidays, sell assets, take on additional work, cut back spending on groceries and social activities, withdraw savings, and in the case of renters, move to cheaper rental properties.

Managing director of the FBAA, Peter White AM, said a similar survey conducted by the association in 2021 – six months before the first rate rise – predicted today’s findings, and Australians have a right to question how our monetary policy has been managed.

At the time the FBAA warned, “many Australians are clearly on the brink and are sleepwalking into disaster, living in the false hope that rates will stay this low.”

“Governments and lenders knew this was coming because the global indicators were there, but somewhere along the line there was a failure to prepare Australians who had become complacent after more than a decade without seeing any rate rises.

“We are sadly now seeing the results,” Mr White said.

He warned that more pain was to come with probable future rises and many borrowers on low fixed rates still to convert to much higher payments.

In what should ring alarm bells across the nation, the survey found that the personal, social and mental health impacts on borrowers and renters are just as significant as the financial challenges.

The figures reveal that 50 per cent of those with a mortgage have experienced greater stress while more than a quarter report tension in their relationship with their partner or spouse. Almost half feel uncertain about the future, and there has been a significant spike in people seeking mental health help from a psychologist, therapist or counsellor, as a direct result of rising rates and rental prices.

Mr White, who has led mental health initiatives for the finance broking industry, said that these findings show that Australia is facing both a financial and mental health emergency.

“It will take a combined approach by government, lenders and the community at large to help people through this.”

He urged people to look ahead and seek assistance, “before the lender comes knocking and you are forced to.”

“Call your bank, mortgage broker or landlord the moment you are concerned that you may not be able to handle the increased payments. Lenders can often help and mortgage brokers have many options.

“And if you feel that you can’t handle the pressures please seek help from a health professional.

“This is a time to look after one another.”