How to manage mortgage after interest-only period ends?

M

MoneyCavalry

New Member
When it doesn’t rain, it pours, doesn’t it? Has anyone else been through something like this?

Back in April 2024, our low fixed rate ended, and with rates so high at the time, we asked to switch to interest-only for a year. Fortunately, with the recent drop, our bank (BOQ) lowered our rate to 6.34%. Now, we’ve received a letter saying our interest-only period is ending in April, and from May, our rate will jump to 7.32%. This means our monthly payments will go up by $1000, which is a lot for us.

To make things even tougher, my husband was stood down without pay two weeks ago when his organization went into administration. We have some equity, but refinancing seems impossible with him unemployed. With just one income and a family of five, there’s no way we can handle payments over $4000 a month.

We’re really hoping for some advice because, right now, selling feels like our only option.
 
Similar situation. We've found ourselves in a position where we've made the difficult decision to list our home. Our hands are tied we can't afford not to anymore. The equity we've built over the years is now our only hope for stability.
 
It’s best to sell as soon as possible while you still have control. Waiting risks losing control and facing a bank takeover, which is far worse. Even with an aggressive price, selling won’t happen overnight, but it’s a necessary step. Make the tough decision now to avoid a worse outcome later.
 
BOQ stands for Bank of Queensland in Australia. Fixed interest loans for the life of the loan are not available here. The average after-tax wage is around 5,500 a month, so a 4,000 mortgage is not affordable for most people.
 
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