Struggling With Mortgage Payments in Perth: Your 2026 Options

If your mortgage repayments are putting pressure on your household budget, you're not facing this alone. With the RBA cash rate sitting at 4.10% as of March 2026, many Perth homeowners are feeling the squeeze from rate rises that began in 2022.

The good news is that struggling with repayments doesn't automatically mean losing your home. Whether you're in Cannington - Thornlie or Baldivis , there are practical steps you can take to improve your situation, and lenders are often willing to work with borrowers who communicate early.

Launch Finance helps Perth homeowners explore their options when mortgage payments become difficult, completely free of charge.

Below, we'll walk you through the refinancing options that could reduce your repayments, the hardship provisions designed to give you breathing room, and the government support programs available in 2026.

What are your immediate options when mortgage payments become difficult?

Your first priority should be contacting your lender as soon as you anticipate difficulty making payments. Lenders are required under responsible lending laws to work with borrowers experiencing hardship, and early communication gives you more options than waiting until after you miss payments.

Most lenders can offer temporary payment deferrals, interest-only periods, or loan term extensions that reduce your monthly commitment while you stabilise your situation. The key is reaching out before you fall behind, not after.

Can refinancing reduce your mortgage payments?

Yes - refinancing to a lower rate can significantly reduce your monthly repayments. As of April 2026, competitive variable rates start from approximately 5.08% p.a., and many borrowers are still on rates above 6% from their original loans or automatic rate increases.

The difference can be substantial. On a $600,000 loan, switching from 6.2% to 5.3% saves approximately $340 per month - that's over $4,000 per year in reduced repayments. Your exact saving depends on your loan balance, current rate, and the new rate you qualify for.

Government schemes and support programs available in 2026

• Mortgage Assistance Scheme : temporary payment relief for eligible homeowners experiencing financial hardship, administered by Services Australia.
• Financial counselling services: free, confidential advice from qualified financial counsellors through the National Debt Helpline (1800 007 007) - available across Perth.
• Utility payment assistance: WA government programs including the Energy Assistance Payment and Hardship Utility Grant Scheme can free up budget for mortgage payments.
• Centrelink support: JobSeeker Payment, Family Tax Benefit, and Rent Assistance may be available depending on your circumstances - even if you still own your home.

• Launch Finance Unsure which options could help your situation? Every borrower's situation is different. A free chat with a Perth mortgage broker gives you a clear picture of your refinancing options and how much you could save - no commitment, no pressure. 5-star review Local experts No obligations Book a free chat today →

How do mortgage brokers help borrowers improve their repayment situation?

Step 1: Talk to us

Get in touch and we'll review your current loan terms, monthly budget, and what's causing the payment difficulty. This helps us identify whether refinancing, restructuring, or hardship options offer the best path forward.

Step 2: Compare your refinancing options

We check competitive rates across our wide panel of lenders and calculate exactly how much your monthly repayments could reduce with a new loan. This includes factoring in any refinancing costs so you see the true benefit.

Step 3: Review loan structure changes

Beyond rate reductions, we examine whether switching to interest-only payments, extending your loan term, or accessing equity for debt consolidation could provide immediate relief while keeping you in your home.

Step 4: Handle the application process

If refinancing is your best option, we manage the application, documentation, and approval process across multiple lenders to find the solution that gives you the strongest monthly cash flow improvement.

Step 5: Coordinate settlement

We work with your solicitor and the new lender to ensure a smooth transfer from your existing loan to the new structure, with your first payment reflecting the improved terms.

Step 6: Monitor your ongoing position

We stay in contact to ensure the new loan structure is working for your budget and can review further options if your circumstances change again in the future.

Common mistakes borrowers make when struggling with payments

The biggest mistake is staying silent. Many borrowers avoid contacting their lender because they're embarrassed or worried about immediate consequences, but lenders are legally required to consider hardship applications and would rather work with you than face costly default proceedings.

The second mistake is not exploring refinancing early enough. Borrowers often assume their current rate is competitive when it may be significantly higher than what's available across the market. A broker comparison takes the guesswork out of whether you can access better terms elsewhere.

What about accessing equity to consolidate other debts?

If mortgage stress is coming from multiple debt commitments - credit cards, personal loans, car finance - accessing equity from your Willetton or Joondalup property to consolidate everything into one lower-rate mortgage payment can provide significant monthly relief.

For example, if you're paying $800 monthly across credit cards at 20% p.a. and personal loans at 12% p.a., rolling that debt into your mortgage at approximately 5.50% p.a. could reduce your monthly commitment to around $300 - freeing up $500 for your core living expenses.

However, debt consolidation extends the repayment period, so you'll pay more interest over the life of the loan even though your monthly payment drops. It's about choosing short-term cash flow relief versus long-term cost, and we help you understand both sides before making a decision.

• Launch Finance Ready to find out which options could reduce your monthly repayments? We compare loans from a wide panel of lenders across Perth. Free service, no cost to you. 5-star review Local experts No obligations Book a free chat today →

Frequently Asked Questions

How quickly can I get help if I'm struggling with mortgage payments?

Immediately - contact your lender as soon as you anticipate difficulty, even if you haven't missed a payment yet. Most lenders can discuss hardship options within 24-48 hours, and we can start reviewing your refinancing options the same day you contact us.

Will refinancing affect my credit score?

Refinancing involves a credit check, but if you successfully refinance and make payments on time, it typically has minimal long-term impact on your credit score. Missing mortgage payments, however, seriously damages your credit rating.

Can I get hardship assistance even if I'm not unemployed?

Yes - hardship provisions apply to any situation where you're experiencing financial difficulty, including reduced hours, medical expenses, relationship breakdown, or increased living costs. You don't need to be unemployed to qualify for assistance.

How much could refinancing actually save me per month?

That depends on your current rate, loan balance, and what rate you qualify for with a new lender. A 1% rate reduction on a $500,000 loan saves approximately $420 per month - which is exactly what we calculate for you in a free consultation.

Is selling my house the only option if I can't afford payments?

No - selling should be a last resort after exploring refinancing, hardship provisions, debt consolidation, and government assistance programs. Many borrowers find a combination of these options allows them to keep their home and stabilise their payments.

Should I use a mortgage broker or go directly to my bank?

A mortgage broker, every time. Your current bank may offer some assistance, but they can only present their own products. A broker compares options across dozens of lenders to find the solution that delivers the lowest monthly payment for your specific situation.

What happens if I've already missed payments?

Contact your lender immediately to discuss a payment plan or hardship arrangement. Missing payments doesn't mean foreclosure is automatic - lenders prefer to work with borrowers to get payments back on track rather than go through costly legal proceedings.

Your Next Steps

Struggling with mortgage payments can feel overwhelming, but taking action early gives you more options and better outcomes. Whether refinancing, hardship assistance, or debt consolidation offers the best path forward depends on your specific situation and what's available across the lending market.

Ready to find out which options could reduce your monthly repayments? Contact the Launch Finance team for a free consultation or call 08 9367 4222. We'll assess your situation across our wide panel of lenders and identify the options that give you the most breathing room in your budget.

Launch Finance Pty Ltd · ABN 17 163 528 701 · Launch Finance Pty Ltd is a Corporate Credit Representative (CCR No. 454041) of BLSSA Pty Ltd ABN 69 117 651 760 (Australian Credit Licence No. 391237) · General information only — this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.