How to manage your home loan repayments
One of the most fulfilling initiatives one can pursue in life is taking out a home loan. It’s when you get to have your own personal space to live, prosper and raise a family in. But nothing in life comes with absolute certainty. You might take out a home loan on the basis of a particular income which you might eventually lose. Most people fail to prepare themselves for the circumstance if they were to lose their jobs.
Or if you take out the home loan as a couple in your own name as well as that of your partner’s and you no longer happen to be together for whatever reason, this can also make life difficult from a home loan repayment perspective. If you do end up in a situation where you feel you can no longer comply with the requirements of your home loan repayments, the first thing you must do is realise you are not alone!
The worst thing you can do in such a situation is panic and the best thing you can do is seek advice from a financial adviser. Don’t be shy to speak to your mortgage broker if you have one or go straight to the lender. You might think your situation is unique and you may well be embarrassed to talk about it, but from the bank’s perspective you are only one of literally thousands of people to undertake a loan and not be able to go through with it without overt struggles along the path.
This is why banks usually have measures put in place to help people continue on with home loan repayments without losing their property altogether as a foreclosure. The bank can help work out a new plan for home loan repayments that you find easier to afford. They will want to consider options such as pausing payments, restructuring your current loan, giving you a longer term or even reducing your interest rates. Debt consolidation can also be an option to help you get through times of struggle.
The lender will take into account the context behind your struggles in order to accurately determine how best to help you out. Factors such as unemployment, illness and fluctuations in personal circumstances will be considered. But we cannot stress enough the significance of not giving up and always be willing to talk to your lender.
At SwitchMyLoan.com.au we strongly believe in ensuring that your interest rate is low enough in the first place that you are never confronted by struggles during home loan repayments!
Call 1300 307 155 and start saving today!
Latest posts by Daniel Jovevski (see all)
- Variable vs Fixed Home Loans – Which one is right for me? - December 5, 2014
- Mortgage Tips for Borrowers - November 20, 2014
- 5 Hot Tips for Getting the Most from Your Home Open - October 8, 2014