Young Aussie takes extreme step to pay his mortgage – and reveals the salary that’s no longer enough
A young Australian was forced to sell his Xbox and iPad to pay his mortgage after his interest rates soared.
Callum James, from Perth, bought his first home in 2020 while working at JB Hi-Fi.
At the time, he was earning between $70,000 and $80,000 and could comfortably afford his mortgage payments of $1,300 per month.
But then his fixed rate ended last July – and his repayments rose to $2,400, and he struggled to make the payments.
Mr James was forced to sell some of his assets just to meet repayments, describing this as one of the low points of his life.
He said his $80,000 salary in 2020 was considered a “decent wage” when he bought his house, but by 2024 this was no longer enough.
“A few years ago, $80,000 a year was a decent wage. Now it feels like you can’t enjoy it even in the slightest.
“You get $5,500 a month, two and a half grand of which, if you’re lucky, goes towards your rent.
Rising interest rates forced Callum James (pictured) to sell his assets just to keep up with rising mortgage costs
“That leaves you with about $8,000 a month in food, which is pretty conservative considering what groceries are like these days.”
‘How is anyone supposed to survive on what used to be considered a decent wage?
He said the cost of food and bills has increased so much that even making $100,000 makes it a challenge to get ahead financially.
He said that a few years ago, $80,000 was enough to live comfortably and provide a real opportunity to buy a home if you managed your finances wisely.
“Nowadays you don’t have enough to even think about it. If you do raise a deposit, your borrowing capacity will be screwed.”
More Australians are feeling the pinch amid rising bills, high groceries and mortgage stress
Many revealed they were also struggling to make ends meet.
‘Try to make $54,000 on a mortgage, groceries, utility bill, internet bill, rates, water rates, home insurance, car insurance, fuel and regional rates in NZ. I would like to make $80,000,” said one.
“The government is so excessive. Politicians should try to live like this for three months, but I bet they couldn’t,” another added.
Others offered suggestions on how to survive the cost-of-living crisis.
‘Live below your means, move in with a roommate. You adapt,” one person claimed.
“If you take home $5,500 a month and have $1,2000 to spend, you’re living beyond your means,” a second added.
The debate comes after Finder data showed 47 per cent of Aussies are struggling to pay off their mortgage loans, amid the relentless pressure from interest rates.
That was the highest level since Finder started surveying Australians on the topic in May 2019.
About 16 percent of mortgage holders have fallen behind on payments at least once in the past six months, while almost a third express concerns about this.
Graham Cooke, head of consumer research at Finder, says Australian homeowners are on the brink of a financial crisis.
‘With emergency reserves depleted and the RBA yet to announce significant interest rate cuts, many fear their livelihoods are at stake.
‘Urgent help may be needed to prevent a wave of financial problems.’