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

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 17 April 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    6.15% p.a. variable
    6.40% p.a.

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

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

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.13% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.


* 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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