Mortgage stress can happen to anyone – what do you do if you are experiencing difficulty? Partnership Property has put together some advice to help you get through it:
It’s easier than you might think – if you lose your job, your income is reduced, your bills or other expenses increase, or if you have an accident or emergency and get into more debt, you may be at risk of getting behind in your mortgage repayments – or in legal terms, mortgage arrears.
Partnership Property advises that Standard & Poor’s rating agency says the recent interest rate increases by major and non-major banks have contributed to a rise in national mortgage arrears, rising from 1.16 percent in March 2017 to 1.21 percent in April 2017. This figure increased in all states except ACT, NT, and Tasmania, with the biggest increases in regional areas.
Don’t let this happen to you. If you haven’t already taken out mortgage protection insurance to cover your repayments in the event of illness, injury, or death – don’t panic! If you are having difficulty making a mortgage repayment, here is what to do.
The first thing that will happen is your lender will notify you of the missed payment. This is when you need to act! Contact your lender immediately to ensure you give yourself the best chance of keeping your home, or selling it on your own terms. At Partnership Property we think that this not only shows good faith, but from a practical and financial perspective it makes a lot of sense as it could reduce your outgoings from the outset. For example, you may have several options available to you, such as taking a payment break, switching to an interest-only mortgage temporarily, or even extending the term of the mortgage. These measures will potentially allow you to not only continue making payments, but may also allow you to build up a surplus in savings to help in the future.
To give yourself the best possible chance of resolving any issues and preventing further difficulty, it is probably also in your best interests to consider seeking legal advice at your earliest opportunity – don’t be put off if you can’t afford a solicitor, as free legal advice is available in each state and territory.
This free mortgage stress handbook explains your options if you are having problems with your home mortgage. It has sample documents you can use, and a list of useful contacts.
If you need help to work out where your money is going, here is a free budget planner to help get you started.
24 June, 2017
Partnership Property is a boutique Brisbane Real Estate/Investment Property agency. We are happy to work with local, interstate, or overseas buyers, and we guarantee you will receive sound, honest, independent advice and information on the Brisbane property market. A large part of our clientele comprises our repeat investors, who readily entrust us with the privilege of managing successive property purchases.
Disclaimer: this article contains information or advice of a general nature only and is not intended to replace professional legal advice.
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