Key takeaways
Many Australians are under financial pressure from higher repayments and rising living costs, and struggling with your mortgage is more common than many people realise
You do not need to wait until you miss a repayment to ask for help, and acting early may give you more flexibility and support options
Hardship support is a legal right, and lenders must respond to hardship requests within 21 days
Speaking to an Aussie Broker can help you understand practical next steps, including refinancing, restructuring or repayment adjustments
Support is available beyond your lender, including free financial counselling and 24/7 mental health support services
For many Australians, mortgage repayments have become harder to manage over the past few years.
Interest rates have risen. Grocery bills are higher. Fuel, insurance, and everyday expenses continue to put pressure on household budgets.
For some households, it’s not one large expense causing stress, it’s the cumulative effect of many smaller increases happening all at once.
And while financial pressure can feel deeply personal, the data suggests it’s affecting a significant number of Australians.
According to ASIC, 47% of Australians with debt have struggled to make repayments at some point. Despite that, many people still avoid asking for support, often because they feel embarrassed or worry it could negatively affect their credit score.
This isn’t a guide to understanding mortgage stress, it’s a guide to what to do if you’re already feeling it.
If repayments are becoming difficult to manage, there are practical steps you can take now to better understand your options and access support early.
The key thing to remember is this: you do not need to wait until you’ve missed a repayment before asking for help.
What’s putting pressure on mortgage holders right now?
A lot of the financial pressure Australians are experiencing today is connected to broader economic conditions, not personal failure.
Finder’s Consumer Sentiment Tracker has consistently shown cost-of-living pressure remains one of the biggest concerns for Australian households, particularly for people managing mortgages and other debt commitments.
At the same time, higher interest rates continue to affect repayment costs and borrowing power.
Aussie Mobile Broker Lou Cornelio says many borrowers are only now realising how much higher rates can affect both repayments and future lending options.
“One thing I'm noticing that often catches borrowers off guard is that rising rates don't just affect repayments, they also reduce borrowing power,” says Cornelio.
“As rates go up, lenders recalculate what you can service, which can meaningfully impact how much you're able to borrow.”
Aussie’s RBA insights highlight that even relatively small rate increases can add hundreds of dollars to monthly household costs over time, depending on the loan size, interest rate, and repayment structure.
As rates rise, borrowing capacity can also reduce, which may make refinancing or restructuring feel more complicated for some borrowers.
Current market conditions have changed how many Australians approach budgeting, repayments and financial planning.
Rather than trying to predict exactly where rates will go next, more borrowers are focusing on flexibility, cash flow, and understanding what support options are available now.
You might also be interested in: Rates are back near pre-cut levels – How Australians are adapting
Signs you might be under financial pressure
Financial pressure doesn’t always show up as a missed repayment. Often, it starts with smaller compromises or growing stress around everyday expenses.
Some common signs may include:
Sign | What it can look like |
Using savings more often | Relying on emergency savings to cover regular bills |
Delaying payments | Paying utilities, insurance or credit cards later than usual |
Cutting essentials | Reducing spending on groceries, healthcare or transport |
Only making minimum repayments | Paying the minimum required amount each month |
Feeling anxious about repayment dates | Constantly checking balances or avoiding account notifications |
Using debt to manage daily costs | Leaning more heavily on credit cards or Buy Now Pay Later services |
You also do not need to meet a formal definition of “mortgage stress” before taking action. If your repayments are becoming harder to manage or causing ongoing stress, it may be worth exploring support early.
If you’re trying to understand what mortgage stress actually means and how it’s measured, read our full guide here: What is mortgage stress and how can you manage it?
What you can do right now
If things are starting to feel financially tight, the most important thing is not to ignore it. You do not need to solve everything immediately.
But taking one practical step can help you move from uncertainty toward clarity.
Below are some of the actions available to Australians experiencing mortgage pressure right now.
Contact your lender’s hardship team
If you’re struggling to make repayments, you have a legal right to request hardship assistance from your lender.
According to MoneySmart, hardship assistance may include:
Possible hardship option | What it may involve |
Reduced repayments | Lower repayments for a temporary period |
Repayment pause | Pausing repayments while you stabilise finances |
Loan term extension | Extending the length of the loan to reduce repayment size |
Repayment restructuring | Adjusting the repayment arrangement based on your circumstances |
Importantly, lenders are generally required to respond to hardship requests within 21 days. In many cases, earlier conversations may give lenders more flexibility to discuss possible support arrangements.
MoneySmart notes that lenders may ask for information about your financial position to assess what assistance may be appropriate.
What to prepare before you call
Having a few details ready may help make the conversation easier:
your current income and expenses
recent changes to your financial situation
upcoming bills or financial commitments
an estimate of what repayment amount may currently feel manageable
Check your equity position
Your equity position may affect what refinancing or restructuring options are available to you.
Using the Aussie App, eligible customers can track estimated property value changes and get a clearer view of their equity position over time.
This may help provide a better understanding of:
whether refinancing could be possible
what lending options may be available
how much flexibility you may currently have
For some borrowers, simply understanding their position more clearly can help reduce uncertainty.
Model different repayment scenarios
When repayments feel stressful, uncertainty can often make things feel heavier. Using tools to model different scenarios may help you understand what changes could look like in practical terms.
Aussie tools you can use
Tool | What it helps with |
Estimate repayments under different rate scenarios | |
Understand how rates may affect borrowing capacity | |
Follow the latest RBA cash rate updates | |
Track property value estimates and equity |
These tools are designed to help you explore possibilities, not make decisions in isolation.
Review your budget
If your finances feel stretched, getting a clearer picture of where money is going may help identify pressure points.
MoneySmart’s Budget Planner can help you map out:
income
essential expenses
debt repayments
discretionary spending
upcoming annual costs
This isn’t about cutting everything back overnight. It’s about understanding your current position so you can make informed decisions about what may need to change temporarily.
A simple starting point
Rather than trying to overhaul your entire budget immediately, it may help to focus on:
upcoming large expenses
subscriptions or recurring costs
short-term cash flow gaps
whether repayment timing aligns with income
Small adjustments can sometimes create more breathing room than expected.
Speak to a financial counsellor
If the situation feels overwhelming, you do not have to navigate it alone.
Financial counsellors provide free, confidential support and can help you:
understand your options
prioritise debts
prepare for lender conversations
build a plan based on your circumstances
access hardship support services
According to MoneySmart, financial counsellors are independent and free to access.
Free support services
Service | Contact |
1800 007 007 | |
1300 22 46 36 | |
moneysmart.gov.au |
Speaking to someone early may help you feel more informed and less isolated while navigating financial pressure.
Speak to an Aussie Broker
If you’re unsure where to start, speaking to an Aussie Broker may help you better understand what options are available.
An Aussie Broker can help assess:
whether refinancing may reduce repayments
whether restructuring your loan could improve cash flow
whether extending the loan term may help ease short-term pressure
how your current rate compares with other available options
what features or flexibility may be available through different lenders
Cornelio says many borrowers seeking support right now simply haven’t reviewed their home loan in a long time.
“We're seeing a significant increase in refinance applications, particularly those who haven't reviewed their rate in some time and may not realise how much they could be saving,” he says.
Aussie provides access to 25+ lenders** and more than 4,000 home loan products. Importantly, the focus is on helping you understand your options, not pressuring you into making a decision.
An Aussie Broker may help you explore:
Area | How a broker may help |
Refinancing | Compare loan options and repayment structures |
Cash flow | Review whether repayment adjustments may help |
Loan structure | |
Flexibility | |
Equity position | Understand how available equity may affect options |
You can find an Aussie Broker or Aussie store near you and book a free^ appointment to talk through your situation.
What a broker can actually do
When people hear “speak to a broker”, they sometimes assume it means immediately refinancing or taking on a new loan.
In reality, an Aussie Broker’s role is often much more practical. Sometimes, the most valuable thing a broker can provide is clarity.
An Aussie Broker may help explain:
how your current rate compares with available options
whether refinancing may be possible based on your equity and circumstances
how restructuring could affect repayments
whether extending your loan term may reduce short-term repayment pressure
what different repayment scenarios may look like over time
Aussie also offers Aussie Activate, which can provide fast indicative approval without impacting your credit score.
For borrowers who are uncertain about their next step, this may help provide more clarity before making decisions.
What an Aussie Broker won’t do
There are several common misconceptions about speaking with a broker.
Myth | Reality |
“I’ll be pressured into refinancing” | Conversations are focused on understanding your options |
“It will cost money just to ask questions” | Speaking to an Aussie Broker is free^ |
“I need to already know what I want” | Brokers can help explain different pathways and scenarios |
“It’s too late once I’m stressed” | Many borrowers explore support options before missing repayments |
Importantly, there is no obligation to proceed with a loan and meeting with an Aussie Broker is free^.
Why acting early matters
One of the biggest misconceptions around financial hardship is that you should wait until things become severe before asking for help. In reality, acting earlier may provide more flexibility.
As financial pressure increases, available options can sometimes become more limited over time.
Reaching out early may create more opportunity to explore repayment arrangements, restructuring or refinancing pathways before missed repayments begin to compound the situation.
It’s also important to understand that hardship support does not automatically damage your credit score.
According to ASIC, around 30% of Australians avoid seeking help because they fear negative consequences or feel embarrassed discussing financial pressure. But avoiding conversation can often make the situation harder to manage later.
According to Cornelio, many borrowers are choosing to stay informed and flexible rather than rushing into long-term decisions.
“Most clients I'm seeing are choosing to remain on variable rates, a smart position given current conditions and the trajectory we're expecting for the remainder of the year,” he says.
The human side of financial stress
Financial stress can affect more than just repayments. It can affect sleep, relationships, concentration, confidence, and mental wellbeing.
Research referenced by Beyond Blue suggests financial stress can significantly increase the likelihood of mental health challenges such as anxiety and depression.
If things feel overwhelming right now, it’s okay to ask for help. You are not expected to carry financial stress alone.
Whether your next step is speaking to your lender, talking with an Aussie Broker, using a budgeting tool or reaching out for support, taking one small action may help create more clarity around what comes next.
Support options are available, and acting early can help you access more flexibility.