I got a great deal on a COVID house — but now my mortgage has doubled

Maddie Walton’s mortgage repayments were just $550 a week when she bought her three-bedroom home in Queensland in 2021 – Now they’re over $1000.

The 26-year-old told news.com.au that she loves her home, but hindsight is always 20/20.

“I bought so much higher than I should have,” she said.

Ms Walton bought her first home for $691,000 with a 10 percent deposit.

She sunk about $125,000 into buying the property but between a buyer’s agent, and hidden costs that come with getting into the market, she only ended up with 10 percent equity in her home.

Four years later, and she owes $600,000, pays back $1000 and has two housemates that combined give her $600 per week, so she’s only shouldering $400 per week on her own.

When she first bought, she was working in medical research and had a partner to share the mortgage costs with. The original $550 mortgage was manageable and she wasn’t lying awake at night stressed about making her repayments.

Here are the communities with the most affordable homes just 30 minutes from NYC

“$550 wasn’t anything to me. Then my partner and I separated three months later, then my friend moved in, but the rates just kept rising and I wasn’t going to increase my friend’s rent because of the rates that isn’t fair,” she said.

There were times that the money stress got so bad, she questioned, was it worth it?

“I have thought over the last three years, has this really been worth it? I’m so stressed.”

Ultimately she still thinks yes.

“I struggled a lot. Especially when I had rooms vacant for a little bit but at the end of the day the property for me is a long-term strategy not a short-term goal and I knew it’d pay-off in the long-term,” she said.

During this time Ms Walton decided to also change careers , leaving medicine to become a mortgage broker.

The move was prompted by the fact she burned through seven brokers while she was trying to buy, adding she felt ignored.

New threat facing homeowners whose properties are featured online — and it’s not just squatters

She didn’t think they were asking the right questions and she found they were asking her how much she wanted to borrow rather than advising her on much she should borrow.

She explained the lack of support left her in financial pain and she doesn’t want the same thing to happen to other young people who are trying to get into the property market.

“None of them were explaining the process to me or making me feel like I was part of the process,” she said.

Now, Ms Walton has a plan for young people, whenever they employ her services, instead of encouraging them to borrow as much as the bank will let them, she takes a very practical approach.

“What are you paying in rent currently? Than what are you saving while paying rent? Together that shows me what you’re currently doing,” she said.

“A lot of first home buyers think of the deposit and the repayments, but there’s extra costs, council rates, water rates, you’ve got to factor that into your payments.”

CLICK HERE TO SIGN UP FOR OUR MORNING REPORT NEWSLETTER

She advises her clients to “practice having a mortgage” before they have one, trial living on what would be left if they borrowed as much as they want too, for a few months and see if it is doable.

The 26-year-old explained that she tells her clients she doesn’t want them to end up overextending and feeling stressed and anxious.

“I don’t want them to be miserable,” she explained.

Ms Walton pointed out that buying a house is “great” but if you overextend and you have to overhaul your lifestyle, eat baked beans on toast, or even get pushed into a position where you need to sell.

“From a bank’s perspective you can afford this but I need you to show me you can save this,” she said.

Ms Walton now runs her own mortgage broker business MoneyLounge.

According to financial comparison website Finder, 41 percent of homeowners struggled to pay their mortgages in July in 2024, and financial expert Graham Cooke previously told news.com.au that housing in Australia has officially gone “through the roof”.

“Rents and mortgages have gone through the roof. They are the number-one source of financial stress in Australia and people can no longer cut costs elsewhere to get by,” he said.

At this point, Mr Cooke said the best advice he could give people is to consider moving in with family or friends to help carry the load.

“Reducing or eliminating accommodation costs, if you are in a position to do so, will significantly improve your cash flow and allow you to accrue savings much quicker,” he advised.

“Not only will you reduce your housing costs but potentially you’ll save money by sharing utility bills and even lower grocery costs.”

For top headlines, breaking news and more, visit nypost.com.