Dental visits are most often cut as households juggle repayments and medical bills
Nearly half of Australians say mortgage costs have led them to delay medical care, according to new research from Money.com.au, as households weigh rising repayments against out-of-pocket health expenses.
The survey found that among respondents who postponed treatment, 61% skipped dental appointments, 23% delayed specialist consultations, 12% deferred mental health care and 4% put off surgery or other procedures.
Average annual healthcare spending was reported at $4,059 per person. Costs varied widely by jurisdiction, with the ACT highest at $6,475 a year, followed by Tasmania ($4,594), Queensland ($4,284), New South Wales ($4,163) and Victoria ($3,873). Western Australia ($3,764) and South Australia ($3,171) recorded the lowest spending.
The research also suggested younger cohorts carry the highest average health spend. Gen Z reported annual healthcare costs of $5,333, followed by Millennials at $4,843, both above Gen X ($4,435) and Baby Boomers ($3,647).
Money.com.au’s mortgage expert, Debbie Hays (pictured right), noted that some borrowers were using home-loan features and additional lending to meet health costs. “More borrowers (50%) are tapping into their offset or redraw accounts to pay for medical expenses or elective surgery when they need it sooner than the public system allows,” she said.
“In most cases, they’re doing a home loan top up (24%) for larger procedures or after-cancer care if they’ve drained their offset due to time off work for treatment. It means people are effectively putting healthcare on their mortgage and paying interest on it over time.”
Hays pointed to recent examples including a $60,000 loan increase for dental implants and restoration after chemotherapy, and a $100,000 top-up to assist with treatment for Motor Neurone Disease.
“We’re also seeing this trend of people increasing their loan balance to get medical care overseas, where costs can be as little as half those in Australia,” she said.
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