‘Strained’: 32yo reveals $400 mortgage plan

Mortgage stress is becoming more and more common in Australia and one Aussie has revealed her clever plan to deal with the “strain.”

The crippling financial crisis isn’t just eating up people’s savings; it’s taking away their time as they are forced to work more to pay their bills.

Natalie Nemer and her husband bought their first house together in May. However, it isn’t an ideal time to buy. The median house price in Adelaide has soared to $785,000, and the current cash rate is 4.35 per cent.

House prices are high, and mortgage repayments are steep across the nation, but Ms Nemer had just become a mum, and they couldn’t all squeeze into her apartment anymore.

The couple sold the apartment Ms Nemer bought in 2018 to fund their family home, and now they are desperately trying to get their mortgage down.

Ms Nemer’s husband is a teacher, so his income is fixed, but she runs two businesses, Tweak Cosmetic and a lash lift service.

“If I pick up a day, I generally can make more money. However, in the same breath, my pay comes from my clients coming to see me,” she told news.com.au.

“I have noticed that the cost of living is affecting the frequency I see certain clients.”

The 32-year-old is working more to help reduce her mortgage. Picture: Instagram/natalie.n.m

They purchased their family home in May. Picture: Instagram/natalie.n.m

Ms Nemer returned to work four months post-partum because she needed to start making money again.

“Having a baby has intensified my focus on financial stability, as I was only able to take four months off work, which I found to be not long enough with a new baby. I’ve found it really hard to have had to return to work so fast,” she explained.

Returning to work was less of a decision she was able to make and more the fact she knew they needed the extra income.

“The cost of living has made it necessary for both my income and my husband’s to support our family and lifestyle,” she said.

The financial stress of having a mortgage has made Ms Nemer desperate to pay it off faster so they can have more financial security in the future and ultimately more time.

The 32-year-old swung into action and created a strict budget so she could see where the couple was spending their money. From there they were able to work out how much more money they could contribute to the mortgage monthly which was $400

“It may not seem like a lot, but when it is combined with having an offset account, which all of our income goes into, plus savings, we will shave off years and hundreds of thousands in interest,” she said.

“We are finding this manageable thanks to the budget. We know what we have for each purpose and, can’t overspend.”

The couple are paying an extra $400 a month. Picture: Instagram/natalie.n.m

Ms Nemer is keen to pay off their mortgage “faster.” Picture: Instagram/natalie.n.m

Ms Nemer is motivated to reduce her mortgage “faster” because she wants to improve her quality of life.

“We’ve made significant adjustments to our spending. For example, I’ve cut back on a lot of personal things and shopping, and opt for budget-friendly alternatives to absolutely everything now,” she said.

“We’ve also re-evaluated our grocery shopping habits, including shopping at different grocery stores to get the most out of our money and focusing on budget-friendly meals that have heaps of leftovers we can freeze. “

The young family is being impacted by rate rises. Picture: iStock

Even with these changes the family is being “affected” by the rate hikes that have been plaguing Australians.

“I could manage my apartment on my own, but with a larger mortgage that comes with a larger home, the higher rates have strained our budget,” she said.

“We’re managing this by working more, closely tracking every dollar and adjusting our spending to maintain a balance between mortgage repayments and enjoying our life.”

The 32-year-old stressed that they aren’t doing it “tough” or struggling” but they are certainly feeling the cost of living pinch.

“It has put a strain on things. We are looking at every single dollar coming in and out of our bank and trying to figure out what is best for us and how we can arrange things to pay down our mortgage, save and enjoy our life,” she said.

“Essentially, we have made the decision to live on a stricter budget to be able to afford a family home that we can grow into with the view of being able to pay this down as quickly as possible.”