A third of Aussie homeowners and renters are struggling
The rising cost of living has more than a third of Aussie homeowners and renters struggling.
A worrying number of Aussie homeowners and renters are struggling to keep up, as the cost of living skyrockets and interest rates rise.
Finder’s Cost of Living report found more than a third (37 per cent) of Aussie homeowners were finding it difficult to pay their home loan, while one in eight (13 per cent) admitted they had missed a repayment in the past six months.
Finder estimated the average Aussie was now paying an extra $12,061 per year for their mortgage due to the recent cash rate hikes.
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New South Wales residents have copped the biggest hikes at $1,200 per month, followed by Victoria at $1,083 per month. Those in the Northern Territory experienced the smallest increase, but it was still $719 per year.
Finder money editor Richard Whitten said the best thing mortgage holders could do was try to find a lower rate.
“The typical way to do this is to compare loans widely and then refinance to a more competitive offer from another lender,” Whitten said in the report.
Another option is calling up your lender and asking. But if you’re really struggling and refinancing may not be an option, Whitten said to talk to your lender first.
“Work with your lender and see if you can get some kind of hardship arrangement or negotiate a pause in your repayments. Don't wait until you've already missed a repayment to do this,” he said.
Renters are also doing it tough, the report found, with more than two in five (42 per cent) saying they were struggling to pay their rent.
A third of tenants have gone to extreme measures to secure their most recent rental property, with 6 per cent admitting they lied about their income to get a place.
Rent rose by an average of 10 per cent across the capital cities in 2022, according to CoreLogic data.
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