Homeowners continue battling repayment pressures

Findings from Mortgage Choice’s August home loan report found 83% mortgage holders are taking active measures to ensure they are meeting repayments.

Over half (59%) said they are eating out less frequently, while 52% are cutting back on entertainment. Many are also reducing non-essential purchases, delaying or canceling holidays, or cancelling subscription services.

The report also found shifting financial circumstances have led to almost a quarter (23%) taking on additional work or side jobs.

According to a finder.com.au survey of 1,062 mortgage holders, 40% are currently paying more than 30% of their earnings towards their home loan.

While the 30% figure is a commonly used threshold used to indicate mortgage stress, the research also found 23% are contributing more than half of their disposable income towards home loan installments.

With these figures in mind, property owners who have not had a loan review in the last six months could benefit from contacting their broker. Negotiating and refinancing may both be options on the cards for people on their home financing journey and wanting to stay on top of the most competitive options.