Mortgage Crisis: Signs You’re at Risk and What to Do About It
With interest rates still relatively high and household costs hitting new highs, many Aussies are starting to feel the pinch when it comes to their home loans. If you’re struggling to keep up with repayments or dipping into savings just to stay afloat, you could be heading toward a mortgage crisis. But don’t panic, there are warning signs to watch for and practical steps you can take to turn things around.
Early Signs You Might Be in Mortgage Trouble
You’re Only Making Minimum Repayments
If you’re no longer able to make extra repayments or have stopped chipping away at your principal, it could be a red flag. Interest compounds over time, and only paying the minimum slows your progress significantly.
Constantly Using Your Offset or Redraw
Your offset or redraw facility should be a buffer, not your everyday lifeline. Regularly withdrawing from it to cover bills or groceries could mean your income isn’t stretching far enough.
Missed or Late Mortgage Payments
One missed payment can happen, but if it becomes a pattern, you may be in deeper than you think. Lenders take repeat missed payments seriously, and it can affect your credit history.
Increasing Credit Card or Personal Loan Debt
If you’re turning to high-interest credit options to get through the month, it’s time to reassess. This can lead to a debt spiral that becomes harder to escape.
You’re Living Paycheck to Paycheck
If there’s no breathing room between your income and your expenses, a single emergency, like a car repair or medical bill, can throw everything out of balance.
What to Do If You’re at Risk
Review Your Budget—Properly
Start by tracking every dollar. Look for non-essential expenses you can cut or reduce. Even small changes can make a difference if your budget is stretched thin.
Speak to a Mortgage Broker Early
At BrokerCo, we specialise in helping homeowners restructure their loans. Whether it’s refinancing to a lower rate, switching to interest-only for a while, or consolidating other debts, we’ll walk you through your options.
Refinance Before Its Urgent
Refinancing can unlock a lower rate, better loan features, or a more manageable repayment structure. But don’t wait until you’re behind, lenders are more likely to approve changes while you’re still in good standing.
Contact Your Lender for Hardship Support
Most lenders have dedicated hardship teams that can temporarily pause or reduce repayments. It’s better to ask for help than to fall behind without saying anything.
Don’t Ignore the Problem
Avoidance makes things worse. Be proactive. Talk to professionals, gather your options, and act before it’s too late.
How BrokerCo Can Help
At BrokerCo, we understand that life doesn’t always go to plan. Whether you’re facing a temporary cash flow issue or a more serious financial hurdle, we can help you explore your mortgage options. We work with a wide range of lenders to find a solution that suits your situation, not the other way around. Reach out for a confidential chat with one of our experienced brokers today.