Australian households have a better grip on their mortgage repayments than in recent times, according to the monthly Mortgage Stress-O-Meter released by Fujitsu Consulting.

The May results show mortgage stress amongst Australian households has fallen by 3 per cent over the past month.

The fall in households suffering mortgage stress has been directly attributed to a combination of lower interest rates and Government stimulus handouts.

The report shows nearly one in three suburban families is making more than the minimum required monthly home loan repayment, placing these homeowners in a good position to weather any future financial turbulence.

40 per cent of households were also considering their fixed home loan rate options, with many believing now may be the time to consider locking in a fully or partially fixed home loan rate.

Homeowners should be wary of rising unemployment however and put in place some strategies for dealing with home loan repayments should someone in the household find themselves temporarily out of work.