FIVE STEPS TO HEAD OFF MORTGAGE STRESS

Two weeks after the RBA’s fourth consecutive rate rise with experts predicting a peak of 3.35 percent from its current 1.85 percent, and the reality of mortgage stress is starting to hit a little close to home for some. Here, Louisa Sanghera, founder of broking firm Zippy Financial and creator of the Mum CFOs Money Masterclass Course offers a quick checklist of ways to save money and minimise the mortgage dramas.

1. Talk to your bank or broker

As a rule of thumb, everyone should be able to afford their mortgage repayments. Even when the interest rate sat at 1.69 percent last year, borrowers were being assessed for their capacity to service their mortgages with rates as 5.25 percent and higher. Banks like to have a buffer in place to ensure borrowers can meet their debt servicing rates.

Look at your mortgage now and consider if you can afford to repay it at a rate of 5.5 percent in the near future. If you can’t, visit your broker or bank to make plan. It may mean restructuring your mortgage over a longer term or moving to interest only on part or all of your mortgage for a while. Your bank or lender will have financial hardship policies in place to support you – the earlier you reach out, the more options you’ll have.

2. Shop around

It only takes a few minutes to do a quick search online to compare prices. You’d be surprised by all the savings to be had from your everyday staples like petrol and groceries to big ticket items like fridges and appliances. Ask for a discount or at the very least price matching if you buy in store. Consumer advocacy groups like Choice and Canstar Blue are great for finding the best value for your money deals with hundreds of reviews to help you compare products.

3. Avoid the lazy tax

Reassess all your utilities – electricity, gas, phone, internet, and insurance and see where you can cut back. For example, if your phone usage is a lot lower than what your plan accommodates, consider downgrading to something more affordable. Phone companies like Amaysim and Boost have great cheap deals on and use the same lines as Optus and Telstra.

If you haven’t switched providers recently, you could be unwittingly paying hundreds on their standard energy contracts. Do some research to see what’s out there then jump on the phone to your utilities provider to ask for a better rate. Make use of utilities comparison sites and ask them for their cheapest deal. Chances are you’ll come away with a healthy discount to stay with the same provider but if you choose to move providers don’t forget to check for any fees you’d have to pay for leaving.

4. Consolidate your debt

Consolidate any debt you have to eliminate multiple loan fees and get rid of the high interest rates you’re paying on credit cards and loans. Rolling all your debts into one loan means you only need to make one regular repayment at the same interest rate. This means you could potentially pay off your loans and your mortgage faster.

You can add these debts onto your mortgage split in a separate short-term loan to repay at your current mortgage interest rates. Also known as a ‘top up’, a home loan increase allows you to access the equity in your home by either increasing the balance on your loan or creating a separate loan that’s linked to the same property. Consolidating debt has its advantages but you must weigh out its benefits over the long term as it’s likely to result in more interest charged over time. Take a good look at your overall financial position and total costs to work out if the lower interest rate offered by home loans will work out well for you in the long run.

5. Curb discretionary spending

Managing discretionary spending is like flexing a muscle. The more you do it, the more it becomes second nature to you. Australians spend a lot on takeaways and food deliveries spending an average of $40 a week on meal delivery services. Other expenses like taxi rides, entertainment, alcohol, and online shopping tend to add up as well. You can trim the fat by opting to meal plan and eat at home, substitute going out for a fun movie night in and deleting all those shopping apps.

Save yourself from impulse purchases by always making a list and sit on it for a few days. Then you’ll know if you really need it. Don’t browse on shopping sites mindlessly – find other ways to entertain yourself. Things like parks, museums and cultural events are often low or no cost. Not only will your wallet thank you in the end, you might end up being healthier too!

Gold is one of the market’s go-to hedges in rocky times. Don’t forget that gold miners’ stocks are too.

The stock market’s gains in 2026 belie the rocky macroeconomic picture: elevated inflation, heightened geopolitical tensions, and jitters about the artificial-intelligence trade. That backdrop, in theory, should be the time for gold to shine. Instead, the price of the yellow metal has tumbled more than 5% so far, after last year’s blistering 65% rally. In part, the U.S. dollar’s recovery has stymied gold, which benefited from the greenback’s weakness in 2025.

Even with the precious metal’s recent weakness, gold mining stocks could be the best way to profit from this year’s uncertainty.

Gold miners “are a valuable hedge against macro risks that would likely be damaging for equities,” BCA Research’s Noah Weisberger and Rishabh Shah wrote this week.

Concerns about the Federal Reserve’s next moves to tackle inflation, the increasingly crowded AI trade, and steep valuations for tech stocks are just some of the drivers that could help gold’s price get on even footing— and lead to even bigger gains for miner stocks.

These stocks’ prices tend to outpace gold’s moves, because the companies have fixed operational costs. So when gold’s price rallies, their profit margins soar, and vice versa. For instance, the VanEck Gold Miners GDX +7.39% exchange-traded fund has fallen 11% this year as the metal has slumped.

Now, gold’s price just needs to stabilize to help miners’ stocks take off, and that seems to be happening. The precious metal has recently found support above the $4,000 level, and has stuck in a narrow range since the end of June. But its price rose ever so slightly in July, ending a four-month losing streak for the metal. Technical analysis also suggests that gold is due for a comeback.

Barron’s recently wrote that the pullbacks for both gold miners and the metal itself are overdone. Senior technical analyst Doug Busch noted that the VanEck ETF is on the “verge of a breakout” and has the potential to hit $11o in early 2027, up more than 40% from its current price.

Gold miners also have more than their role as a market hedge going for them. Their fundamentals are solid, too, says Chris Mancini, portfolio co-manager of the Gabelli Gold Fund.

“Precious metals miners are generating substantial amounts of free cash flow given profit margins of over $2,000 per ounce, and are returning this cash to shareholders through buybacks and dividends,” he said in an email.

“Buying the miners is a cheap way to get exposure to the price of gold,” he added. His fund owns Newmont NEM +6.71%, a Barron’s stock pick last year, and Agnico Eagle Mines as top holdings, as well as miners Northern Star Resources, Endeavour Mining, and Kinross Gold K+8.59%.

Miners are better businesses than they used to be, the BCA team added.

“Capex is more disciplined, margins are high and rising…and they are largely independent of the AI story,” Weisberger, BCA’s head of equities, and Shah, a senior analyst, wrote.

That last part is key. AI is disrupting the software industry and many other services and information-oriented businesses, and investors have piled into AI stocks. But ChatGPT, Claude, Grok, and other large-language models aren’t going to replace the need to mine for metals.

“Equity portfolios can benefit from exposure to quality that is uncorrelated to AI risk, and gold miners fit the bill,” the BCA team said.

They recommend that investors buy the VanEck Gold Miners ETF, which owns top miners such as Agnico, Barrick Mining ABX +7.24%, and Newmont.

An important bonus for big gold miners’ stocks is that their valuations are attractive after the gold’s pullback, too. The VanEck ETF is now trading at just a little more than nine times next year’s earnings estimates. That’s a big discount to its five-year average price-to-earnings ratio of 14, according to FactSet.

What’s more, the ETF is currently valued at a more than 50% discount to the S&P 500 SPX -0.17%, which is trading for about 19 times earnings estimates for 2027. Mining stocks have typically traded at just a 25% discount to the broader market over the past five years. So there is significant upside for the group if valuations move back toward normal levels.

One factor that complicates mining stocks as a market hedge, of course, is if stocks bounce back, which has been the case so far in August.

But both the market and economic outlooks remain cloudy, and investors remain nervous about the Fed’s next moves and AI stocks. Gold miners should do just fine, even if the anxious mood on Wall Street persists.