Mortgage Stress · Updated October 2026
Mortgage Stress and Retirees: It Is Never Too Late to Plan
I am genuinely concerned for a lot of Australians around my age and older. Many will not be able to retire, or retire in the lifestyle they worked so hard for.
The good news: it is never too late to plan and reduce the impact. But you have to decide to act.
More Australians Carry Debt Into Retirement
The research is sobering. A study by Curtin University and RMIT University for AHURI found that between 1987 and 2015:
- average real mortgage debt among owners aged 55 and over rose by around 600%, from about $27,000 to more than $185,000;
- their average mortgage debt-to-income ratio roughly tripled;
- average annual repayments more than tripled in real terms.
The same research found that older people struggling with repayments report worse wellbeing and mental health. And the trend has not reversed: Australians are buying their first home later in life, so more will carry a mortgage past 60. Read the full AHURI report.
When the Numbers Don’t Add Up
If the plan is to sell the family home, pay off the mortgage and buy something smaller, check the numbers early. After the debt and the costs of selling and buying, there may not be enough left to buy the home you want.
Renting in retirement is a real risk too. Rents are high, and demand for social housing and rent assistance from older Australians keeps growing. Relying on that safety net is not a plan.
Put a Plan in Place Now
Start by being honest about where you are, then look at every option your home gives you:
- Pay it down faster while you are still earning, and review your loan and rate.
- Add value before you sell, so there is more left after the debt is cleared.
- Use your land: a backyard home, subdivision or development can release equity.
- Use the downsizer contribution (from age 55) to rebuild super from the sale.
- Know the trade-offs of reverse mortgages and the Home Equity Access Scheme before relying on them.
“Do you want to live in retirement, or just exist? The choice is yours.”
Stephen Lazar, properT network
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Worried About Your Mortgage in Retirement?
Tell us where you are now. We will look at your home and show you the options that could reduce the debt and lift what you retire with.
Prefer to call? 0413 108 125
Sources: AHURI: Mortgage stress and precarious home ownership: implications for older Australians (2019); SBS News: More Australians are buying homes later (August 2026); ATO: Downsizer super contributions. General information only, current as at October 2026. Rules change: confirm your position with a licensed adviser.
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September 6, 2019 at 9:07 am
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