Rising Interest Rates Burden Australian Homeowners

Callum James, a 26-year-old from Perth, has been forced to sell his Xbox and iPad to afford his mortgage after his repayments surged from $1,300 to $2,400 following the end of his fixed-rate loan. Initially earning between $70,000 and $80,000 in 2020, he now finds that his salary is insufficient to meet the rising cost of living, including skyrocketing food and utility bills. Many other Australians are also struggling financially, with reports indicating that over one-third of homeowners face difficulties in making mortgage payments. Meanwhile, Susan, a 43-year-old Melbourne woman earning $110,000, has been denied a home loan, illustrating that even higher salaries are no guarantee of home ownership in today's economic climate. Experts emphasize that the financial strain on homeowners is exacerbated by a prolonged period without interest rate cuts and increasing living costs. This situation reflects a broader issue affecting many Australians, leading to calls for politicians to better understand the hardships faced by everyday citizens.