Lenders have forecast a grim outlook for struggling mortgage holders over the next six months as the housing affordability crisis worsens.
It's not going to be a merry Christmas for more than a million Australian households this year, according to a new report which predicts mortgage stress will hit record levels by December.
Already 837 thousand families are suffering from some form of mortgage stress, with household budgets continually hit by skyrocketing interest rates and the cost of living.
Wizard home loans and Fujitsu Consulting says stress levels are rising in line with their projections and with more than seven million mortgages currently being paid off - stress will top the million mark in time for the festive season.
Martin North from Fujitsu says by Christmas the numbers will be much worse.
“There are around 800 thousand people in some degree of stress today, of which 340 thousand are in severe stress, meaning that they are finding it really difficult to pay their mortgages on time.
“As we look forward to December we think that over a million will be in some sort of stress by the end of the year.”