NORTH Fremantle recorded a staggering 325 per cent increase in households experiencing severe mortgage stress in three months, according to a new report, but a local real estate agent and resident has questioned the reliability of the figures.
The national OurTop10 Mortgage Stress Report, powered by Digital Finance Analytics, found the number of severely stressed households in postcode 6159 had jumped from 142 to 603 in the second quarter of 2026.
The suburb was the second-fastest rising severe mortgage stress area nationally, behind Bilgola in Sydney’s Northern Beaches.
The report defines mortgage stress as households running a negative monthly cash flow, where regular expenses exceed income, including mortgage repayments.
But Yard Property estate agent Nathan Hewitt said he was sceptical about the North Fremantle figures, particularly given the small sample size.
DFA said the survey was conducted with 4500 households, which represents just 0.04 per cent of the estimated 10.6 million homes across Australia.
“There is about 1000 homes in North Freo, so it’s still only a tiny percentage,” Mr Hewitt said.
To be exact, it would equate to one phone call to the suburb.
He questioned how researchers had obtained the information, suggesting it may have come through property purchases or refinancing, when borrowers provide detailed financial information.
“I’ve never heard of this specific survey,” he said.
Mr Hewitt said North Fremantle had experienced increased property turnover in recent years, potentially reflecting downsizing by older residents and younger buyers entering the market.
He said younger purchasers were generally more likely to hold mortgages, but questioned whether that necessarily meant they were experiencing financial hardship.
“Many people buying in there are generally on pretty good incomes,” he said.
Outstripping income
The report says severe mortgage stress is increasingly appearing in affluent suburbs where large loan repayments and rising living costs are outstripping household incomes.
DFA principal Martin North warned the pressure could persist, saying: “This smells of a long difficult episode for many, rather than a quick turnaround.”
The report also found Perth recorded the nation’s largest quarterly increase in stressed households, adding 14,746 across its ranked postcodes.
Mr Hewitt said North Fremantle remained among the most expensive property markets in the Fremantle area, alongside South Fremantle.
He said the figures were interesting, but their interpretation depended heavily on the definition of mortgage stress and the survey’s methodology.
by STEVE GRANT