Paying off the family home before retirement was almost an unwritten part of the retirement plan for generations of Australian families: work hard, pay down the mortgage and, by the time the regular pay cheques stopped, own the roof over your head.

For a growing number of Australians, that equation is becoming much harder.

New research from Finder has revealed almost one in three mortgage holders is now spending at least half of their take-home pay on home loan repayments, while a significant proportion of borrowers expect their mortgage to follow them into retirement.

Finder’s 2026 Home Loan Report paints a sobering picture of the pressure facing Australian homeowners, with the average mortgage holder now spending 38 per cent of their after-tax income on repayments.

The research, drawn from Finder’s July 2026 Consumer Sentiment Tracker, surveyed 1,010 Australian adults, including 291 mortgage holders.

It found 43 per cent of mortgage holders, equivalent to an estimated 1.4 million Australians, spend at least 40 per cent of their take-home pay on their mortgage each month.

Most notably, 29 per cent said 50 per cent or more of their take-home pay was going towards repayments, according to the latest figures supplied by Finder.

Richard Whitten, home loans expert at Finder and author of the report, said that level of mortgage commitment could leave households with little financial breathing room.

“When your home loan is consuming close to half your take-home pay, it leaves very little room for anything else,” Whitten said.

“There’s simply less money left to build savings, invest or cope with unexpected expenses.”

The mortgage isn’t necessarily disappearing at retirement

For Australians approaching retirement, however, another finding in Finder’s research may be even more significant.

Just 55 per cent of mortgage holders expect to have their home loan paid off before they retire.

Finder found 24 per cent expect to still have a mortgage when they reach retirement, while 14 per cent are already retired and continuing to make repayments. A further 6 per cent said their mortgage would cause them to delay retirement.

Combined, Finder says 44 per cent of Australian mortgage holders are either expecting to retire with mortgage debt or have already done so.

Income also makes a substantial difference. According to the report, 76 per cent of mortgage holders earning more than $200,000 expect to clear their loan before retirement, compared with just 25 per cent of those earning less than $50,000.

For people approaching retirement, that is important because the mortgage repayment may remain much the same while employment income can fall substantially.

Older borrowers aren’t immune

Younger Australians are carrying the greatest proportional burden, with Millennials reporting that an average 41 per cent of their take-home income goes towards mortgage repayments, but older borrowers are hardly untouched.

Gen X mortgage holders are spending an average 36 per cent of their take-home income on repayments, while Baby Boomers with mortgages are spending 30 per cent.

That can become particularly important in the years immediately before retirement, when many Australians are also trying to boost superannuation, build cash reserves and prepare their finances for life without a salary.

It also challenges the traditional picture of retirement in Australia: reaching your 60s with the house paid off and mortgage repayments finally behind you.

Could it be time to challenge your bank?

Whitten said borrowers struggling with repayments shouldn’t automatically assume they are stuck with their existing loan.

“If your mortgage is eating up too much of your income, it’s worth reviewing your home loan,” he said. “Refinancing to a lower rate, negotiating with your lender, or finding a more competitive loan could reduce your repayments and free up thousands of dollars over the life of your mortgage.”

Finder’s broader report suggests refinancing isn’t necessarily straightforward for everyone. Some borrowers may be restricted by their income, the amount of equity they hold, lending criteria or other circumstances. The report found only 45 per cent of mortgage holders believed they could switch lenders immediately if they wanted to.

But reviewing a mortgage doesn’t necessarily mean changing banks. Borrowers can ask their existing lender whether a lower rate is available, compare their current interest rate and fees with competing loans, and consider whether refinancing costs would be outweighed by longer-term savings.

For people approaching retirement with a sizeable mortgage, the decisions can become more complicated still. Using superannuation to clear debt, making extra repayments before retirement or downsizing may all have significant consequences for someone’s overall retirement position and shouldn’t be considered in isolation.

The bigger message from Finder’s research may therefore be a simple one: the mortgage should be part of the retirement conversation well before the final day at work, because for a growing number of Australians, retirement no longer necessarily begins when the mortgage ends.

Source: Finder 2026 Home Loan Report and July 2026 Consumer Sentiment Tracker. Finder surveyed 1,010 Australian adults, including 291 mortgage holders.