There are a few definitions of mortgage stress. Some define mortgage stress as lower income households that spend at least one third of household income on mortgage repayments (ABS). Others define mortgage stress as households that spend more money on expenses than their income (Digital Finance Analytics).
Mortgage stress may not be an immediate issue. But if finances are tight, then one event – an accident, unemployment, separation, health issue, or interest rate rise – can tip a household into financial crisis.