An Aussie mum has sparked debate after she claimed a six-figure income isn't enough for a family of three to live 'comfortably'.
Lou, from That Money Mum, told Daily Mail Australia that her family had to adjust their spending habits because their mortgage payments doubled due to rising interest rates.
'Two years ago, my husband and I earned $150,000 a year,' the Melbourne mum said.
'We didn't have kids, our mortgage was $800 and we could easily save $1,000 a fortnight without really trying.
'In the past two years, we've had a baby, I've gone part-time, and our mortgage has gone up by $800 a month.
'Our car insurance jumped from $800 to $1,100, our body corporate is up $50 a quarter, Netflix has increased, Spotify has increased and don't get me even started on groceries.'
Lou added that the increased budget strain meant her family 'has to be frugal'.
'We count every single dollar in order to have just a little bit left over to put onto our mortgage,' she said.
'It feels crazy to say because $140,000 sounds like a massive number, but for three people - two adults and a baby - with a mortgage in this economy, it just doesn't feel like much at all.'
Someone earning $140,000 - paying off an average $600,000 home loan - would now be in mortgage stress, where a borrower is spending 30 per cent or more of their pay on monthly repayments.
That's because the annual repayments of $46,416 would constitute 33.2 per cent of a high-income earner’s salary.
This means a family, paying off a $750,000 house with a 20 per cent deposit, would really be stretched following 13 interest rate rises in 18 months that have taken the Reserve Bank cash rate to a 12-year high of 4.35 per cent.
![An Aussie mum has sparked debate after claiming a $140,000 income isn't enough for a family of three to live 'comfortably' (stock image)](https://i.dailymail.co.uk/1s/2024/04/30/06/84253165-13365013-image-a-14_1714456189398.jpg)
An Aussie mum has sparked debate after claiming a $140,000 income isn't enough for a family of three to live 'comfortably' (stock image)
![](https://i.dailymail.co.uk/1s/2024/04/29/06/84206827-13360453-image-a-8_1714370089845.jpg)
Australian borrowers are now paying 59 per cent more on their mortgage than they were three years ago - with financial markets now expecting even more rate rises in 2024
Lou defined being comfortable as the ability to enjoy a few luxuries without worrying about finances.
'We are the lucky ones. I think to be comfortable, you'd have to earn more, like $170k, but it would depend on your debt,' she said.
'We would be more comfortable without the mortgage.'
Hundreds of Aussie mums agreed and said they were struggling on incomes that would have bought them the 'high life' a few years ago.
'I'm on $100,000. No kids and struggling to balance saving and having fun. $140k is definitely not a comfortable income for three or more people,' one said.
Another wrote: '$140,000 is the new $80,000. My husband and I are on $200,000 combined with four kids. We live on the tighter side of comfortable.'
A third said: 'Household of four. $260,000 income. We are comfortable but definitely not living the high life. Five years ago we would have felt like royalty.'
Another said: 'We are on about $170,000 for family of four, two pets and feel the same as when I was on maternity leave and earning $100,000 five years ago.'
But others said $140k was more than enough to survive the cost of living crisis.
'I'm a single mum of three, and we get by ok on $46k a year.'
![For a borrower with an average $600,000 mortgage, monthly repayments have climbed to $3,868 up from $2,431 - or by $17,244 a year (pictured is a house at Clontarf north of Brisbane)](https://i.dailymail.co.uk/1s/2024/04/29/03/84203117-13360453-image-a-3_1714356035518.jpg)
For a borrower with an average $600,000 mortgage, monthly repayments have climbed to $3,868 up from $2,431 - or by $17,244 a year (pictured is a house at Clontarf north of Brisbane)
A second added: 'We're a $150k per year family of three and are comfortable to save for holidays or renovations.
'I think it depends on debts and mortgage. Makes a big difference. We have no car loans or debt, and our mortgage is $2,000 a month.'
A third said: 'I'm a single mum on a $55k. But somehow I make it work. And I manage to save and my daughter goes without nothing.'
Australian borrowers are now paying 59 per cent more on their mortgage than they were three years ago - with financial markets now expecting even more rate rises in 2024.
Back in April 2021 the Commonwealth Bank, Australia's biggest home lender, was offering variable mortgage rates of 2.69 per cent.
But three years on, variable rate borrowers are now paying 6.69 per cent.
For a borrower with an average $600,000 mortgage, monthly repayments have climbed to $3,868 up from $2,431 - or by $17,244 a year.
Someone with an $800,000 mortgage - buying a $1million home with a 20 per cent home loan deposit - would have seen their monthly repayments climb to $5,157 up from $3,241.
That would equate to a $22,992 surge in annual mortgage costs.
And despite the rate rises house prices have surged in Australia's capital cities as immigration hit record-high levels - adding yet another hurdle for those struggling to buy a home.
Sydney's median house price has surged by 10.7 per cent during the past year but in Brisbane they have soared by 15.9 per cent, and in Perth by 20 per cent.