Australian mortgage holders are increasingly resorting to skipping essential expenses to stay on top of their rising home loan repayments, according to new research from Finder.
The survey of 1,062 people, including 346 mortgage holders, found that 25% have had to forgo other payments to prioritise their mortgages, equating to an estimated 825,000 homeowners nationwide.
With the average home loan in Australia now at $641,143—a 1.1% rise from the previous month and an 8% increase year-on-year—borrowers are struggling more than ever.
Finder’s data reveals that 1 in 10 mortgage holders (10%) have skipped grocery shopping, while the same proportion have even missed meals to cover their growing repayments.
Richard Whitten, home loans expert at Finder, commented on the findings: “Aussies are increasingly running out of money each month and have to choose which bills to pay and which to delay. When you’re struggling financially, a roof over your head comes first, even if it means skipping bills or other important expenses.”
The survey highlighted a variety of payments that borrowers are delaying. In addition to skipping groceries and meals, 7% have delayed paying energy bills, while 6% have put off paying for petrol and credit card bills. Other deferred expenses include personal loans (3%), Buy Now Pay Later (3%), and mobile phone bills (3%). Health insurance (2%), children’s school fees (1%), home insurance (1%), and internet bills (1%) were also shelved to meet mortgage obligations.
Whitten warned that missing or delaying payments on bills could negatively impact credit scores. “Mortgage debts are sky high, and the hard truth is that people’s expenses exceed their incomes, leaving households very vulnerable,” said Mr Whitten.
