A record 1.5 million Australian home loan borrowers are now "at risk" of mortgage stress in the three months to July, representing 29.2% of mortgage holders, as the Reserve Bank's interest rate increases early this year flowed through to the wider mortgage market, new research from Roy Morgan has revealed. The July figures – which were the highest since May 2008, when there were 1.46 million mortgage holders "at risk – covered a period of two interest rate increases of 0.25%, taking the OCR to 4.1% in June.

After a year of aggressive interest rate hikes, 12 times in the last 15-monthly meetings, the number of households at risk of mortgage stress increased by 642,000.

"If there is a sharp rise in unemployment, mortgage stress is set to increase towards the record high of 35.6% of mortgage holders considered 'at risk' in May 2008 during the GFC."

At the same time the number and value of owner-occupier refinances hit a new record high in May, with new lending also returning to growth.

A total of 30,807 owner-occupier loans were refinanced in the month of May, new data from the Australian Bureau of Statistics (ABS) has shown — marking the first time that more than 30,000 loans have been refinanced in any given month.

At RFS we are talking to more clients about a range of options including reviewing their rate with existing lender, extending terms of loans, consolidating other debts into their home loan or assistance with budgeting of repayment relief from lenders. If you have any concerns contact us ASAP