Feeling the Squeeze on Your Mortgage in 2026? Eight Practical Moves to Take Right Now
If your mortgage repayments feel tighter right now, you're not alone. Roy Morgan's April 2026 research shows nearly three in ten Australian mortgage holders are experiencing difficulty meeting their repayments, with stress rising following the RBA's rate increases in February, March and May.
Here's what you could do to ease the pressure.
1. The loyalty tax: are you paying more than you should?
Many lenders offer better deals to new borrowers and either move long-term customers onto higher rates or simply do not pass on cuts at the same rate.
If there's a gap between what you're paying and what new customers are getting on the same product, you could be eligible for a reprice. Some lenders will match rather than lose you.
We can check this on your behalf and put the case to your lender directly.
2. If your lender won't move, it may be worth switching
If they don't come to the table with a better rate, other lenders might.
Some lenders offer cashback deals to borrowers who refinance across. Sometimes enough to cover the upfront cost of switching.
We can compare your loan across the market and manage the refinance if there's a deal worth moving for.
3. Make your savings work harder with an offset
If you've got savings sitting in a transaction account earning nothing, moving them into an offset account may reduce the interest you're charged.
An offset account works by reducing the balance on which interest is calculated.
Say you have a $500,000 loan at 6.2% and $20,000 sitting in savings. Without an offset, you're paying interest on the full $500,000. With an offset, you're paying interest on $480,000. That's around $1,240 less in interest per year, without making a single extra repayment.
Even parking your pay there between bills could make a difference over time.
4. Track where your money goes
Downloading three months of bank statements and highlighting every recurring payment may help you spot where money's leaking.
Small subscriptions and forgotten memberships can add up.
ASIC's MoneySmart Budget Planner could help you redirect funds towards your mortgage.
5. Extending your loan term: breathing room now
If your repayments are unmanageable, extending your loan term may reduce the monthly amount.
You'll likely pay more interest over the life of the loan. But if it keeps you out of arrears and buys you breathing room, it could be worth considering.
You can often make extra repayments later when your cash flow improves.
6. Locking in certainty with a fixed rate split
If you're on a variable rate and worried about further increases, you could fix part of your loan.
This may not lower your repayments immediately, but it could give you certainty on a portion of your debt.
Many lenders let you split your loan (say, 50% fixed and 50% variable).
7. Restructure: interest-only or debt consolidation
Refinancing isn't always about the rate. Sometimes it's about changing how your debt is structured.
If you're carrying credit card or personal loan debt, rolling it into your mortgage could reduce your monthly outgoings. Home loan rates are typically much lower than unsecured debt.
Some lenders will also agree to a short interest-only period without a full refinance, which can free up cash flow while you find your feet.
Talk to us about what might suit your situation.
8. If things get serious: ask your lender about hardship options
Under Australian credit law, lenders are required to consider hardship applications. Most have a dedicated hardship team, and contacting them early gives you more options.
Depending on your situation, your lender may be able to:
• Pause repayments for up to six months (with interest either waived or added to your loan balance)
• Move you to interest-only repayments temporarily
• Reduce your repayments for a set period
• Capitalise any arrears you've already accumulated, so you're back on track
You need to ask. It won't happen automatically. But if you reach out before things get critical, lenders generally have more flexibility to work with you.
Handled properly, a hardship arrangement shouldn't show on your credit file as a default.
Support is available if you need it
If you're already behind on repayments or heading that way, reaching out early may give you more options.
National Debt Helpline (1800 007 007) offers free, confidential support. Financial counsellors can help you negotiate with lenders and explore hardship options.
Your lender's hardship team is also there to help.
Talk to us about your home loan
If repayments are feeling tight, we can explore what options may suit your situation.
Contact us to discuss your loan.
Disclaimer: This is general information only and not financial advice. Everyone's situation is different, so before making any decisions about your mortgage or finances, talk to a qualified professional who can look at your specific circumstances.