Mortgage Stress
Spending over 30% of gross income on repayments. A blunt measure.
What is Mortgage Stress?
Mortgage stress is typically defined as spending more than 30% of gross household income on mortgage repayments. An economic indicator — not a regulatory threshold. Useful for flagging household budgeting risk.
Why it matters for you
The 30% rule is a blunt measure. For a high-income professional household, 35% might be comfortable; for a low-income household, 25% might be stressful. What matters is whether repayments leave genuine margin for savings, emergencies and lifestyle. A good broker models your real budget, not a ratio.