Households are experiencing lower levels of mortgage stress than five years ago, says data from the past two censuses analysed by the Grattan Institute. Mortgage stress is defined as spending 30% or more of household income on home loan repayments.

“In 2011, about 10% of households had mortgage stress. Today it’s only 7%,” Grattan Institute chief executive John Daley says.

Low-interest rates have made it easier for households to meet mortgage repayments.

“If a typical household bought the average home in Australia with a 20% deposit in 2011, it spent about 29% of after-tax income on repayments,” Daley says.

“A typical household buying the average home today would only spend about 26%.”