Lending Association

Overcoming cash flow challenges.

Borrowers have been feeling the pinch as interest rates continue to rise. While these increases may impact your monthly mortgage repayments, it is crucial to take proactive steps to avoid negative cash flow. 

The Reserve Bank of Australia (RBA) has been adjusting the cash rate since last year to target rising inflation and maintain a balanced economy by lowering consumer spending. Many borrowers have been impacted by the rising rates and experiencing their expenses exceeding their income. At this time it is essential that variable rate borrowers take proactive measures to avoid negative cash flow, as it can impact overall financial stability, hinder savings, and lead to financial stress. By implementing effective strategies, you can navigate rising rates while maintaining control over your cash flow.

Here are some options that you may want to consider to avoid going into negative cash flow:

  • Increase income

Assistant Governor, Brad Jones recently addressed the strain that borrowers have been feeling, emphasizing the need to supplement earnings. Almost half of the borrowers in the lowest-income quartile are now “having to devote around a third of their incomes to mortgage payments”, while those in the upper-income quartile are devoting around 5 per cent to repayments. Taking on additional work or exploring alternative income streams can provide the necessary boost.

  • Reduce non-essential spending

Evaluate your expenses and identify areas where you can cut back. Trim discretionary spending, such as entertainment, dining out, or unnecessary subscriptions.

  • Budgeting and financial planning  

Develop a comprehensive budget that accounts for your income, expenses, and mortgage repayments. A well-structured budget allows you to monitor and track your cash flow effectively, enabling you to make informed financial decisions and identify areas for potential savings.

  • Consider a refinance

Our team have a deep understanding of the mortgage market and work with over 60 banks and lenders. We’re here to do the leg work for you and leverage our strong industry relationships to negotiate a great deal for you.

I had my home loan recently refinanced and all other debt consolidated by the brilliant Lending Association team. They made everything absolutely smooth and stress-free. They listened to our needs and were spot on meeting all our requirements, down to the minute details. The whole transaction saved us thousands of dollars in monthly payments. – Tibor Hegedis

Contact us!

During these periods of rising rates and cash flow challenges, our team is here to help. Our expertise, access to a diverse range of lending options and our deep understanding of the mortgage market can help you during these times of uncertainty. You don’t have to face cash flow challenges alone. Reach out to us to proactively address concerns, explore refinancing options, and implement effective budgeting strategies. Together, we’ll find the right solutions for your financial needs.


Any information provided herein is of a general nature only. No consideration has been taken into your objectives, needs or financial situation. Before acting on this information you should consider if it is appropriate for your situation.