Only days after the governor of the Reserve Bank (RBA) told a conference in Hong Kong that Australian households are “in a pretty good position”, new research highlights the worsening financial position of many Australians as they battle with rising rates and enter ‘mortgage stress’.

Released by market research agency Agile Market Intelligence in association with the Finance Brokers Association of Australia (FBAA), it found that one in four Australians have seen their current financial situation worsen over the last 12 months.

It also found that more than a third of Australian mortgage-holders – 35 per cent – may be experiencing mortgage stress, battling with mortgage repayments greater than 30 per cent of household income. This was consistent with similar recent research by Roy Morgan.

FBAA managing director Peter White AM said the RBA should take note that “it’s getting worse not better”.

“We understand the RBA has a complex job to do, but when the governor says that Australians are all doing well, and that inflation is getting higher by people getting haircuts and going to the dentist, I have to question what planet she is living on.

“It doesn’t serve the RBA to belittle the hardship many Australians are facing right now, particularly when it could have introduced smaller rises over a much longer timeframe, as the FBAA called for well before the first rare rise,” Mr White said.

He said the research showed that so many interest rate rises over such a short period of time was a major reason for the difficulties facing Australian households.

“The FBAA isn’t advocating for irresponsible fiscal management but I urge the RBA not to dismiss the human toll that results from its decisions.

“Australians can’t refinance their way out of this – they need relief,” he said.

Mr White said his message to borrowers who may be struggling is to act early and not to wait until they fall into default.

“Talk to your existing lender and ask for a better rate, but if they won’t help, see a mortgage broker for refinancing options that are in your best interests.”

He said some will struggle to meet refinancing requirements but brokers have access to non-bank lenders who may be able to assist.