Australian mortgage holders are feeling the pinch as new research by Finder reveals that some borrowers are spending up to two thirds of their income on repayments. The ongoing high interest rate environment has pushed the average Aussie to contribute 34 per cent of their income towards their mortgage each month. However, some homeowners are facing even greater financial strain, with one in 10 mortgage holders allocating half of their income to repayments, and 12 per cent spending a staggering 60 per cent of their earnings on their home loans.
Richard Whitten, a home loans expert at Finder, highlighted the impact of rising interest rates on households, stating that Australian mortgage payers are currently dealing with the most expensive home loans in 13 years. Finder’s Consumer Sentiment Tracker further revealed that 34 per cent of Australians struggled to pay their home loans in June, indicating the widespread financial burden faced by many homeowners.
Whitten emphasized the importance of identifying and addressing any financial leaks that may be contributing to mortgage stress. He suggested cutting down on discretionary spending, such as takeaway meals, and redirecting those savings towards an emergency fund. By making small adjustments to their expenses, homeowners may be able to alleviate some of the financial pressure associated with high mortgage repayments.
The research findings underscore the challenges faced by Australian mortgage holders in the current economic climate. With interest rates on the rise and many households already stretched thin, it is crucial for borrowers to proactively manage their finances and seek out potential cost-saving opportunities. By taking steps to reduce unnecessary expenses and build up their savings, homeowners can better navigate the financial strain of high mortgage repayments and work towards achieving greater financial stability.