Mortgage stress is hard, so here are three good reasons to call your lender now

By Evlin DuBose · · 2 min read
Fact Checked
Advertiser disclosure
Woman calling her lender on the phone in her kitchen

Affording your home is important: mortgage stress can drain your finances and mental health, and evidence suggests it’s mounting in Australia.

Indeed, a survey conducted by Mozo at the beginning of the year showed 73% of borrowers would be maxed out financially after four 0.25% rate rises. That means only 27% of borrowers surveyed can absorb another RBA hike this year – and the rate cycle is far from over. 

So if mortgage stress has hit home for you, here are three good reasons to call your home loan lender right now.

1. You could negotiate a lower interest rate

Woman cross legged on the phone in her living room

According to Mozo’s survey, 50% of surveyed borrowers hadn’t thought to call their lenders and negotiate their mortgage interest rate – and 17% didn’t know they could. 

While we’re used to variable interest rates changing, it’s vital to remember that you can have a hand in their change, too. A lender would rather lose some money by giving you a lower interest rate than lose your business altogether when you refinance. 

Call your lender today to see if you can score a more competitive interest rate. If they’re unwilling to play ball, compare home loan offers on the market to see if you can switch and save.

Loan details

Your remaining loan amount ($)
Your remaining loan term (years)

Rate change

Repayment change if rates go up

2. Asking for help won’t affect your credit score

Woman working at her desk in her bedroom

There truly is no shame in asking for help financially, and new regulations mean customers who speak up get rewarded. If you call your lender and need to push the “help” button, i.e. declare financial hardship, it doesn’t count as a red mark on your credit report or bring down your credit score. 

This rule change means you now have nothing to lose by asking your lender for help: in fact, it rewards you for taking ownership of your financial situation and looking for solutions. Mortgages are a significant expense – it’s best to stay on top of your repayments before they get out of hand. Your proactivity is a strength, not a failure.

3. You can tackle other forms of debt

Person on their laptop on their living room floor

A home loan is a significant debt, but you likely have other debts competing for your hard-earned money, too, such as credit card payments or energy bills. Your bank can help you tackle these first so you leave your mortgage repayments alone.

Credit card lenders may temporarily arrange interest-free repayments for you, and energy providers may help you develop a long-term arrangement to help you get back on track. Some mobile and broadband providers may even offer you a temporary discount to keep you on their plans. Not every service will work with you, but you’ll be surprised how many will. 

Remember: your business is valuable. If a company doesn’t try to keep you, they’re not worth keeping in your budget! 

Compare refinance home loans below.

Compare refinance home loans - last updated 1 May 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Owner Occupier, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    5.90% p.a.

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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    Details
  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

    Compare
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  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Investment, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.29% p.a. variable
    6.20% p.a.

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

    Compare
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    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 60-70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.41% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% deposit required.

    Compare
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    Details
  • Fixed Rate

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    6.54% p.a.
    fixed 2 years
    7.10% p.a.

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

    Compare
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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