Tim and Rebekah Smith’s interest rate on their mortgage had been at about 2.5 per cent since the couple moved into the house they had built in Perth’s southern suburbs in 2016. So when the fixed rate period came to an end in March and the interest rate on their mortgage jumped to 6.5 per cent, they had to come up with $800 more each month to cover the payments.
"We cut back on things like going out, eating out. We had to be mindful of any spending, put off holidays and had to juggle the bills coming in as they have also gone up," Smith said. Steve Mickenbecker, group executive and commentator from financial comparison site Canstar, said there are steps financially stressed borrowers can take to try to make their budget work.