Managing a mortgage isn’t always easy, especially when life throws unexpected curveballs. With rising interest rates, you may find yourself under pressure, wondering how to handle your next home loan repayments.

As tempting as it may be to ignore the problem, the last thing you want to do is start skipping monthly repayments. If you are struggling financially, there are many options available that you may not have considered. This doesn’t have to mean selling your home. Small changes can help get your budget back on track and alleviate stress in both the short and long term.

If you are having difficulties paying your mortgage, the first step is to contact your bank or lender. They may be able to discount rates, waive fees or extra charges for breaking early access to term deposits, or restructure your repayments, such as paying interest-only.

Booking an appointment with a mortgage broker might also be worthwhile as they could find a competitive loan from a different lender.

If your situation is potentially dire, you could also approach your bank about short-term assistance, known as hardship variations. These measures may give you some breathing space to work out how to best get back on your feet.

The key is to try not to fall behind in your mortgage repayments. Seek help early if you are feeling worried. Remember, there is always someone to talk to about your situation, and banks have hardship teams who are used to managing these issues.

No matter what, don’t try to navigate this situation alone. You are not the first person to ask for help, and you won’t be the last.

Now isn’t the time to be subscribing to multiple streaming services or ordering takeaway meals every night. Review your monthly spending habits and look for ways to cut costs.

This includes contacting all of your utility providers, such as electricity, water, and gas, to see if you can negotiate a competitive deal. Every dollar counts, and you have nothing to lose by asking.

If you are out of work and have income protection insurance, now may be the time to use it.

Consider all your options, including taking on a second job until you have paid back any outstanding debt. Renting out your property and relocating somewhere more affordable temporarily may also be a viable solution. Even renting out a spare bedroom is another way to generate extra income.

If your repayments are becoming unmanageable, another idea is to downsize your mortgage by moving to a more affordable suburb or smaller property.

Always seek advice from #1 Property Centre, who can provide insight into market conditions. If you have owned your property for several years, you likely have good equity.

However, selling may not be the best option if you have only recently purchased or taken loans against your property. If your home sells for less than what is owed, you will still need to pay back the outstanding debt. Mortgage insurance – usually taken out with a home loan – only ensures the bank is paid out for any shortfall. The insurance company is entitled to pursue you to recover their losses.

It is easy to lose track of all the fine print associated with your home loan. Even though it may feel overwhelming, take the time to get your paperwork in order. This includes account numbers, loan type, interest rates, mortgage length, and repayment schedule.

Stay on top of what higher interest rates mean for your budget so there are no surprises when repayments increase.

If you apply for assistance from the bank for financial hardship, you will need to explain why you are struggling to make repayments.

Outline any ideas you feel may help get your finances back on track. Let them know if you are willing to sell assets such as a car to meet your debt. Being realistic about what you can and can’t afford is important.

Never ignore important documentation—seek advice immediately. Everyone can access free financial counselling by calling the National Debt Helpline on 1800 007 007. Skilled professionals can review your situation, provide practical advice, and help negotiate with creditors.

The Australian Financial Complaints Authority (AFCA) may also be able to provide assistance if you are unable to resolve the issue with your lender. They will try to reach a settlement between the client and the financial firm through negotiation or conciliation. Lenders are not able to enforce proceedings if a complaint has been lodged with AFCA (contact them on 1800 931 678).

You can also access free specialist credit law advice through Community Legal Centres—each State/Territory has a different provider. Legal Aid may also be able to assist.

Remember, banks deal with customers facing financial hardships every day. Even though it may feel awkward to call, they can provide expert advice. If refinancing your home loan, ensure any new agreement is manageable. Don’t rush into anything you find uncomfortable. It can also help to find someone you trust to act as a sounding board when making decisions about your financial future.

For expert advice on property decisions, reach out to #1 Property Centre—we’re here to help you navigate your options.