Victorian homeowners worried about paying their mortgages will be able to access broader support from next May after the state government announced changes to Mortgage Stress Victoria, the only free service in Australia dedicated to helping people manage mortgage strain. The service, which brings together lawyers, social workers and financial counsellors, will open its doors to households earning up to $90,000, up from the current $75,000 threshold, following a $4 million allocation in the latest state budget.
Minister for Consumer Affairs Nick Staikos said the expansion responds to ongoing pressures faced by households, especially against a backdrop of elevated cash rates set by the Reserve Bank of Australia. Recent research shows that while the proportion of Australians at risk of mortgage stress had fallen to its lowest in three years earlier this year, further rate increases could push that share back up.
Mortgage stress is defined by many analysts as the point at which mortgage repayments take a substantial share of income, and movements in interest rates play into that dynamic because lenders often pass on changes in the official cash rate to borrowers. This year the RBA has lifted the cash rate back to levels around long‑term averages to tackle inflation, prompting concerns about the impact on household budgets.
Mortgage Stress Victoria offers help at every stage of mortgage strain, from early conversations about repayment options to cases where a court has moved to repossess a property. The service began as a pilot in Melbourne’s western suburbs before rolling out across the state in 2022. Advocates say access to legal and financial advice at an early stage can make a real difference to families trying to stay in their homes.
The government’s wider cost‑of‑living measures, such as free public transport for children and energy rebates, form part of its efforts to ease household budgets. Yet community services from neighbourhood houses to crisis support groups continue to voice concerns about strained resources and rising demand for help.
Some economists point out that mortgage strain reflects a mix of factors beyond interest rates. Employment stability, income growth and broader inflation trends all shape households’ ability to meet repayments. In the latest data, mortgage stress had eased in early 2026 but could rise again if further rate increases occur.
As Victorians plan their budgets for the year ahead, the expansion of Mortgage Stress Victoria will offer a wider safety net for those juggling mortgage payments and everyday costs.
For more information on support and eligibility, households can call 1800 572 292 or visit here.
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