Generation X is struggling the most when it comes to paying back mortgages, according to a recent survey.
Almost 75% of respondents said they were not confident about making their monthly payments. Nearly a quarter were combining upward of 30% of their total household income to their current home loan.
The research, undertaken by market research agency Feedilicious, surveyed mortgage holders across all states and regions. It found the age group 35-44 struggle the most in all aspects of making mortgage payments.
Other findings from the survey showed that almost half thought to find the right mortgage deal was the most challenging aspect of taking out a loan.
The research also found that more than half of respondents were sacrificing holidays to be able to keep up with payments and 41% cut back on everyday expenses like groceries, utilities and transport.
Mandeep Sodhi, CEO of aggregator HashChing, said that people do not realise their options.
He added, “Instead of regularly checking whether they can refinance to avail themselves of a better interest rate, a process that can save them tens of thousands of dollars off their home loan, they’re making substantial sacrifices to their lifestyle to offset their monthly mortgage payments.
“Past research has shown us that interest rates are the key factor in mortgage stress and the average interest rate in Australia for February this year was over 5%.
“It’s time for mortgage holders to proactively look for ways to curb their monthly payments and a great solution is refinancing.”
One in ten respondents also took on a second stream of income and 8% found ‘gig’ work to meet their payments.