Owning a house in the present day is no easy feat. With cost of living on the rise, a housing affordability crisis has eventuated.
For current homeowners, this has taken its toll in the form of mortgage repayments.
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To investigate just how much stress mortgage holders are under, Savvy conducted a survey of 1000 Australians which revealed 38% of Australians plan to spend less and prioritise mortgage due to rising financial hardships.
The representative survey on rising interest rates and mortgage repayments determined that 21% of Australians are “feeling the pressure” on mortgage rake hikes.
With repayments tipped to increase even further, 38% of respondents indicated they will spend less and prioritise their mortgage to make ends meet. Furthermore, 1.7% of those surveyed went so far to say that would try to downsize their homes.
Commenting on the increasing pressure of rate rises, Savvy spokesperson Adrian Edlington says, “People are willing to tighten belts and go without to prioritise the mortgage, which is exactly what the RBA wants to see but is a harsh reality for families doing it tough.”
And tough it is…
“If rates continue to rise, scrimping and saving to fund the mortgage has an end point. With reports saying that consumer confidence has hit another near historic low last month, we can only hope that three percent cohort who are missing repayments doesn’t increase as time goes on,” he continued.
If you, or someone you know are feeling overwhelmed, reach out Lifeline:
Call: 13 11 14 (24 hours/7 days)
Text 0477 131 114 (24 hours a day, 7 days a week)
Chat to Lifeline online at www.lifeline.org.au (24/7)
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