Many people struggling with home loans, forced into survival mode.

According to recent findings from a survey conducted by Finder, a staggering number of Australians are currently struggling to make ends meet when it comes to their mortgage payments. In fact, a whopping 21% of respondents (equivalent to 693,000 people) have resorted to paying only the bare minimum on their home loans in order to avoid falling behind on repayments. And for 6% of borrowers (198,000 people), this has become a necessary survival tactic.

Richard Whitten, a home loans expert at Finder, has expressed concern over the growing number of households in what he calls "survival mode". He explains, "With such a large portion of people's earnings going towards their mortgage and little to no spare cash, it's no wonder that more and more Aussies are struggling to keep up with their payments." Whitten urges those who are facing financial difficulties to reach out to their lenders for assistance, assuring them that there is no shame in asking for help.

Unfortunately, the number of mortgage holders who have defaulted on their loans has been steadily increasing over the past few years. According to analysis of data from the Australian Prudential Regulation Authority, an alarming $14.6 billion worth of home loans were between 30 and 89 days past due in March 2024 - a 65% increase from just a few months prior. This trend has been consistent over the past year and a half, with overdue mortgages now accounting for 0.9% of all outstanding home loan debt, up from 0.62% in December 2022.

In light of these concerning statistics, Whitten emphasizes the importance of borrowers ensuring they are on a competitive interest rate. He advises, "You should be aiming for an interest rate starting with a 'five' or a low 'six' - anything higher and you're likely paying too much." With the start of a new financial year, he also encourages homeowners to conduct a mortgage audit and shop around for better deals.

In conclusion, Whitten stresses the importance of seeking financial assistance if needed and staying on top of mortgage payments in order to avoid falling into delinquency. He also invites readers to stay updated on the latest news, celebrity gossip, and sports updates through Finder's WhatsApp channel, assuring them that their privacy is protected.

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