Australian households are worn down by years of rising costs, and many feel too fatigued to make proactive money decisions, according to new research from Compare the Market.
The comparison site’s Household Budget Barometer 2026, based on a nationally representative survey of more than 3,000 people, found three in five Australians say their financial situation has worsened over the past year.
The report says average mortgage repayments are now double what they were five years ago, as higher interest rates have combined with larger loan sizes. Since January, repayments on the average owner-occupier loan have risen by about $600 a month, Cotality estimates.
The survey also shows the toll that prolonged price pressures are taking. Most respondents (85%) said inflation had lasted longer than they expected, and only 9% believe the cost of living is improving.
Some 61% described themselves as financially fatigued and less able to make proactive money decisions. That fatigue was most pronounced among 35- to 44-year-olds.
Compare the Market economic director David Koch (pictured) said Australians had entered an era of “budget burnout”.
“Australians need to see the finish line,” he said.
Koch noted that respondents described skipping holidays and routine appointments, missing family events and, in serious cases, cutting back on meals and power use to stay afloat.
Signs of strain are also appearing in lending data. At CBA, the share of home loans at least 90 days overdue rose to 0.8% in the September quarter, a six-year high.
Mortgages are only one cost on the rise. Across the five largest capitals, home and contents insurance quotes have risen about 26% over two years, adding roughly $599. Car insurance is up around 21%, or about $375.
Koch warned that tired households tend to stay put and often pay more as a result.
“The cruel irony is, when people are stretched financially, that’s exactly when they need to be more proactive about shopping around,” he said.
He urged providers, including banks, to be more upfront about price rises.
“Insurers, energy retailers, and banks need to clearly explain why prices are going up, because too often increases land without a clear reason,” Koch said.
He said consumers who find the numbers don’t stack up should feel confident switching to a better deal.
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