March 18, 2025 by Katrina Gower-Brown
Are you grappling with financial stress? Here are three tell-tale signs:
- More than 30% of your income goes towards your mortgage
- Bills cause instant anxiety
- Your’re dipping into savings or maxing out credit cards
As a mortgage broker, I often encounter clients struggling with housing affordability stress and financial hardship. If you are feeling the pinch, here are 7 practical strategies to consider:
- Firstly review your budget: Examine your expenses and identify areas to cut back, if possible. Use the MoneySmart Website Cash Flow Template to track your money flow. Cash Flow Template
- Reduce your mortgage repayments: Lower to the minimum amount or change payment frequency.
- Switch to interest only repayments temporarily to free up cash flow.
- Restructure your loan: Consider moving from a variable to fixed rate or splitting the loan.
- Refinance with a new lender offering a more competitive interest rate.
- Consolidate debt: Combine multiple debts into a single loan with one monthly payment and a lower interest rate.
- Negotiate payment terms with suppliers (eg gas/electricity): Extend payment terms or adjust the schedule to align with your cash flow cycles.
Important: Always check with your lender regarding possible costs and charges before making any changes.
As mortgage brokers we’re here to help navigate these challenges. We can assist with many of these strategies, from refinancing to negotiating with lenders on your behalf. Don’t hesitate to reach out if you need guidance or support.
If you are feeling overwhelmed, free financial counselling services are available in Australia:
- National Debt Helpline – 1800 007 007
- Small Business Debt Helpline – 1800 413 828
- Beyond Blue Support Services – 1300 224 636
Contact: Kate Gower-Brown
Email: Kate.gower-brown@mortgagechoice.com.au
Phone: 0477 712 161
