Balancing Home Loan Repayments and Cost of Living in Challenging times

Skyrocketing house prices nationwide, combined with a cash rate that has remained at a decade-long high since November, have contributed to widespread penny-pinching among mortgage-burdened Aussies.

If you’re a homeowner, you may feel like you’ve been left in the lurch – but you’re not alone! Many mortgage holders are struggling to meet mortgage repayments without having to sacrifice their financial health and basic needs. Balancing everyday expenses with a hefty mortgage is a real challenge for many Aussies.

So, what can you do?

The first step for anyone struggling with their mortgage repayments is to ensure you’re on a competitive rate. If your current lender can’t provide you with a more competitive deal, there may be another lender who can. Refinancing can be crucial to maintaining a healthy, adaptive mortgage.

Just like you can switch over to a more competitive rate for your home loan, you can do the same for your utilities. Talk with your existing electricity and gas provider to see if there are cheaper options available. If they can’t move you to a more competitive rate, shop around with other providers.

If you’re unable to make your regular repayments on your home loan, it may be worth exploring the option of switching to interest-only repayment, like 6% of mortgage holders in Australia. Interest-only payments are charged monthly by your lender, but they’re smaller than regular mortgage repayments, since you are only paying the interest. Your loan amount will remain the same and you’ll still keep the property, but eventually, you’ll need to pay off the original loan amount, often through higher repayments later on. This could end up hurting you more than helping you, so it’s always important to discuss this in-depth with your finance professionals before making any rash decisions.

The option of interest-only repayments depends on your individual circumstances and may not be available to owner-occupied loans. It’s essential to consult with a mortgage broker to determine if this is an option suitable for you.

If you’ve had your loan for several years, the remaining term left on your loan may be shorter than the maximum term of 30 years, offered by most lenders. If you’re struggling to pay your home loan, refinancing to extend your home loan back to 30 years can reduce your monthly repayments and help manage your household budget. While this will increase the total interest paid over the life of the loan, unlike interest-only repayments, the principal balance will still decrease. Essentially, a longer repayment term means more interest over time; the longer it takes you to pay off your loan, the more interest you’ll accrue.

Additionally, local food markets, farmer markets, and produce suppliers such as fruit stores, bakers, and butchers have seen relatively stable pricing while supermarket costs have skyrocketed. Instead of going straight to your local supermarket, it may be worth going down to your community’s Sunday market.

It’s important to let your lender know ASAP if you are experiencing any financial hardship or struggle; brokers and lenders can help you navigate this stressful time, so don’t delay and reach out as quickly as you can – after all, we’re here to help!

What Clients Are Saying About Us

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   Atin Kumarsapra 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great experience with Strawberry Finance for our bridging loan. Shaz and Sahil made the process quick, clear and hassle-free. Really appreciate their support and would happily recommend them!
  
 
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   Walter Vargas 
 
 
 
 Trustindex verifies that the original source of the review is Google. Exceptional service, the whole process was fast, completely transparent and with the best outcome possible. Very happy customer!
  
 
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   Tharusha Dilun 
 
 
 
 Trustindex verifies that the original source of the review is Google. We had a fantastic experience with Strawberry Finance for our bridging finance. Shaz and Sahil were knowledgeable, efficient and made the entire process easy to navigate. They were always on top of everything, kept us informed and provided excellent support from start to finish. We’re very happy with the outcome and would definitely recommend Strawberry Finance to anyone needing finance.
  
 
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   Lucia May 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great customer service from the team at Strawberry Finance. We were matched with a far better mortgage rate and the whole process of refinancing was smooth and easy to navigate all the necessary paperwork.
  
 
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   Steven Johnston 
 
 
 
 Trustindex verifies that the original source of the review is Google. I highly recommend Strawberry Finance. Their team supported me every step of the way—from exploring the best lending options through to a smooth and stress-free settlement. Professional, responsive, and genuinely committed to achieving the best outcome.
  
 
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   Toby Rushton 
 
 
 
 Trustindex verifies that the original source of the review is Google. I can’t recommend Sahil and Shaz from Strawberry Finance enough! ⭐️ We had such an amazing and completely stress-free experience working with them. We had spoken to around 10 different brokers before, and unfortunately, they all said no. When I came back to Sahil and Shaz, I immediately knew they were the right fit for us. From the very beginning, their knowledge, professionalism and confidence really stood out. I felt like we were in safe hands, and they genuinely took the time to understand our situation and guide us through everything. Thank you so much, Sahil and Shaz, for making what could have been a stressful process feel so easy and smooth. We’re so grateful for all your help and would absolutely recommend you to anyone looking for the right people to work with!
  
 
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   Harry 
 
 
 
 Trustindex verifies that the original source of the review is Google. Had an excellent experience with Sahil and Shaz at Strawberry Finance. They were friendly, professional, and incredibly easy to deal with throughout the entire process. What I appreciated most was how genuine and transparent they were. Everything was explained clearly, communication was great, and I always felt like I was in good hands. They made the whole experience feel straightforward and stress-free. Sahil and Shaz genuinely care about their clients and go the extra mile to make sure everything is handled properly. I wouldn’t hesitate to recommend Strawberry Finance to anyone looking for knowledgeable and trustworthy mortgage brokers. ⭐️
  
 
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   De Kent 
 
 
 
 Trustindex verifies that the original source of the review is Google. Sahil and Shaz are fantastic to work with, and have made the process of buying a house as streamlined and stress-free as possible. We definitely recommend using them.
  
 
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   Luca Scutella 
 
 
 
 Trustindex verifies that the original source of the review is Google. Shaz and Sahil at Strawberry Finance made buying our investment property an easy and stress-free experience. They found us a great loan with a fantastic rate, kept us informed throughout the process, and were always available to answer our questions. Their service was professional, efficient, and exceeded our expectations. We highly recommend Strawberry Finance to anyone looking for a mortgage broker.
  
 
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   Jayden 
 
 
 
 Trustindex verifies that the original source of the review is Google. We had an outstanding experience with Strawberry Finance. Shaz and Sahil were incredibly professional, knowledgeable, and supportive throughout the entire process. They helped us secure bridging finance and made what we expected to be a stressful process feel surprisingly smooth and straightforward. They kept us informed every step of the way, answered all our questions promptly, and worked hard to find the right solution for our situation. Thanks to their guidance, we were able to upgrade to our new home without needing to sell our existing one first, which made a huge difference for our family. We genuinely appreciate all the effort Shaz and Sahil put in and would highly recommend Strawberry Finance to anyone looking for honest, reliable, and expert mortgage advice. Thank you both for making the whole experience so easy!
  
 
  
  
 
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