Extra costs for Aussies with disability could cause mortgage payment problems

Key points:

• Approximately 41 percent of homeowners with disabilities have mortgages, according to recent data from the Australian Institute of Health and Welfare
• Financial experts recommend that Australians having trouble paying their mortgage should seek assistance from their home loan provider as soon as possible
• The Australian Financial Complaints Authority is a free service created to assist in and resolve disputes between consumers and their lenders regarding mortgage and other financial issues

Financial experts stress that Australians, including people with disability, experiencing financial hardship should seek help before it’s too late.

People with disability are at ‘higher odds of experiencing financial vulnerability,’ compared to peers without disability.

Approximately 64 percent of Australians with disability currently own their own homes, with 41 percent living with a current mortgage. 

However, some Australians with disability may have an increased likelihood of financial hardship, compared to people without disability who earn the same amount of money. 

Factors contributing to this may include costs of medical care, personal support and certain transport related to their disability needs.

Australian Securities and Investments Commission Chair Joe Longo previously highlighted that some home loan providers are not yet tailoring financial hardship assistance to customers’ personal situations.

“For people who reach out to their lender to signal they need support, this can be devastating. Too many Australians in financial hardship are finding it hard to get help from their lenders and it’s time for meaningful improvement,” he said.

Leading mortgage providers include Commbank, Westpac, NAB and ANZ, which are estimated to be tied to approximately 80 percent of outstanding mortgages for residential properties.

While banks are a common option for people seeking home loans, non-banks that also offer large loans include HomeStart, La Trobe Financial and Aussie.

The Australian Financial Complaints Authority is a free service created to assist and resolve disputes between consumers and their lenders regarding financial issues. 

Approximately 32 percent of Australian adults with disability have a low personal income, classified as $383 dollars or less per week. 

The average weekly housing cost is $493 dollars for Australians with mortgages.

Australian Financial Complaints Authority Lead Ombudsman for Banking and Finance Natalie Cameron commented on why Australians facing financial hardship should seek assistance if required.

“Financial hardship can happen to anyone, often unexpectedly. It could result from job loss, a medical emergency or other circumstances affecting your ability to meet obligations like loan repayments,” she said.

“My message to consumers is that the earlier you act, the more options will be available to you.

“By seeking help early, you have the best chance of avoiding falling into deeper financial trouble. Delaying action can lead to missed payments, additional fees and a damaged credit history — not to mention the mental toll of spiralling debt.”

However, the current housing crisis and rental stress may contribute to Australians with disability finding themselves at risk of homelessness.

Approximately six percent of households spend more than 50 percent of their combined income on housing costs.

In 2023, 25,900 clients who received support from specialist homelessness services live with disability.

Read more about the current housing concerns for some Australians with disability in this article: The average cost of shelter is now out of reach for one in three Aussies with disability.

If you are experiencing financial hardship or debt, contact free financial counselling services such as the National Debt Helpline by calling 1800 007 007 or by visiting their website. 

Alternatively, free mental health support is available at the Beyond Blue website and by calling 1300 22 4636.

How do you manage paying rent or mortgage payments as a person with disability?

Let the team at Talking Disability know on social media. 

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