The number of mortgage borrowers at risk of mortgage stress, as measured by Roy Morgan, has hit a record high. The number at risk reached 1.57 million in August, representing 30.2 per cent of borrowers. The number is up from 759,000 in May last year, when the Reserve Bank started increasing the cash rate. While the number of borrowers at risk is a record, the proportion is still below the 35.6 per cent at risk during the financial crisis. Roy Morgan measures mortgage stress in two ways: borrowers are at risk if their mortgage payments are greater than a certain percentage of after-tax household income (25 to 45 per cent, depending on income and spending); and they are considered extremely at risk if the interest component of their payments is over those percentages. The number of borrowers extremely at risk hit 1.06 million – an increase of more than 580,000 since rates started to rise. The number represents 21 per cent of borrowers, which is well above the average of 15,3 per cent over the past 15 years. Roy Morgan chief executive Michele Levine said in a statement: “Although many have suggested that RBA has finished its cycle of interest rate increases, the low Australian dollar and high petrol and energy prices are adding to inflation and may force their hand for further interest rate increases in the months ahead. “We have modelled two further interest rate increases. If the RBA raises rates by another 25 basis points, the number at risk of mortgage stress will rise to 1.65 million, or 31.4 per cent of mortgage holders.”