Patricia makes sure her cats are properly fed, but rarely spends much money on herself. “I’m scrimping as much as I can, and I’ve sold a few household items to try to meet my mortgage repayments,” the 68-year-old says. “I don’t go shopping for clothes, and I don’t go shopping for shoes, and I don’t buy makeup.
“I do like to get a haircut every six weeks, and I like to get a nice haircut.” That small luxury may be the next item to be cut from Patricia’s budget as she tries to catch up on her latest mortgage repayment, equal to about half her pension. Patricia, who lives in regional Victoria and asked for her surname not to be published, is one of a growing number of mortgage holders who have asked their lender for help, only to be left frustrated.
“They just want me to sell the house and go and live in a unit or retirement village or something, but I don’t want to do that,” says Patricia, who has more than 80% equity in her house. “I don’t have much left to sell. I did sell my mower because I’m not well enough to do the lawns any more, but now I’ve got to pay someone to do it.
” Australians are falling behind on their mortgages in increasing numbers, as a prolonged period of elevated interest rates and relentlessly high living costs erodes saving buffers. ANZ disclosed on Friday in its annual results that “past due” loans – meaning customers have fallen more than 90 days behind on repayments – are up 47% to $4.17bn.
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