Australian homeowners are being urged to tread carefully as a wave of job cuts across the nation’s biggest banks threatens to deepen the financial strain on households already grappling with rising mortgage repayments and record-high cost-of-living pressures.
This week, National Australia Bank announced plans to axe more than 400 jobs, just a day after ANZ revealed it would slash a staggering 3,500 positions. Commonwealth Bank has also quietly trimmed its workforce, with 45 roles eliminated as part of its shift towards artificial intelligence solutions.
These announcements come on the heels of similar moves by Bendigo Bank and Bank of Queensland, signalling a sector-wide shake-up.
The timing couldn’t be worse for Australian homeowners.
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According to Aaron Scott, co-founder of real estate agent comparison service bRight Agent, the convergence of job insecurity and rising mortgage stress is creating a “debt trap” that could have devastating consequences for families.
“Families are doing it tough,” Scott said.
“House prices are rising, mortgage stress is hovering around record highs, household budgets are stretched to breaking point, and now we’ve got the big banks like ANZ, NAB and CBA cutting jobs
“Essentially new first-home buyers are being encouraged to take on risky loans and it would seem that major lay-offs are being announced on a daily basis.
“It’s a debt trap!”
As ANZ, NAB and CBA announce sweeping staff lay-offs amid restructures and ongoing cost-of-business pressures, Australian homeowners are being warned not to fall further into what’s being called a “debt trap”.
New data from Roy Morgan underscores the severity of the situation. In the three months to June 2025, 28.4 per cent of mortgage holders were classified as ‘At Risk’ of mortgage stress - up 1.5 percentage points from the previous quarter.
This marks the highest rate of mortgage stress since January 2025, with 684,000 more Australians falling into this category since interest rate hikes began three years ago.
Alarmingly, 1,032,000 Australians (19.7 per cent of mortgage holders) are now considered ‘Extremely At Risk’, well above the 10-year average of 14.8 per cent.
The Finance Sector Union (FSU) has slammed the banks for gutting jobs while posting massive profits.
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Bendigo Bank, which recently reported a $514 million profit, announced a restructure impacting 637 technology workers, with 145 jobs axed outright. BOQ, meanwhile, cut 200 jobs last week and outsourced half of its contact centre to India.
FSU National Secretary Julia Angrisano criticised the banks for prioritising executive bonuses over workers and customers.
“Three banks in less than a week have cut jobs– ANZ, NAB, and now Bendigo. Add BOQ last week, and it’s clear this is a tidal wave of cuts hitting workers across the sector,” Angrisano said.
“Workers are being blindsided, jobs are being offshored, and customers are left with poor service. This is not consultation; it’s box ticking.”
According to Aaron Scott, co-founder of real estate agent comparison service bRight Agent, the financial strain on everyday households is now extremely critical, with rising mortgage repayments colliding with growing job insecurity.
For homeowners, the implications are dire.
With fewer experienced staff in mortgage help and technology divisions, longer wait times and reduced services are expected – just as lending becomes more accessible to first-home buyers.
Scott warns that young Australians entering the property market must proceed with caution.
“Young people, especially first-home buyers, need to do everything they possibly cannot to exceed their means and savings,” he said.
“You never really know what financial bumps and hardships will come your way, so it’s best not to be stretched to the limits.”
As the Reserve Bank’s interest rate cuts fail to provide immediate relief and job cuts ripple through the financial sector, the message to homeowners is clear: brace for impact.
The debt trap is closing in, and navigating the property market has never been more fraught with risk.
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