Potentially missing a home loan repayment is a distressing situation to be in. Your lending institution will expect you to make up the repayment and even charge you with a certain fee. If you can make the payment instantly and continue making future mortgage repayments, then you should be fine. However, if you continue missing these repayments, then you are in a problematic situation.
The good news is that you do have OPTIONS. It is critical to understand your financial situation. And get on the front foot by communicating with your lender or connecting with a lending specialist to figure out the most suitable steps to take going forward.
Peter and Paula found themselves in financial difficulty after a loss in the family. Both are in long-term PAYG employment; however, due to the loss, they had accumulated significant unexpected expenses and were now behind on many of their existing financial commitments. They were left with multiple defaults totalling $6,500 and had two late payments on their home loan as well.
Peter and Paula did not want to lose their property at Athelstone, so they were keen to refinance their home loan and three other unsecured loans to avoid the late fees that continued to occur. Because the defaults were related to a one off event and were individually all under $2,000, we managed to approve the loan with our Specialist Clear product.
Peter and Paula were then able to move on with their lives after a trying time both emotionally and financially.
Uncover The Right Strategy That Works For You
If you have owned your house for some time, then you may have plenty of equity. It may be as simple as consulting a lending specialist and discussing if they can consolidate your debts through refinancing.
This solution works perfectly if you do not need to borrow more than 80 per cent of the current value or your property.
This is something we can help you with. Let’s have a quick chat and assess your available options.
Evaluate your current home loan interest rate. If there is a drop in the rate, then you have an option to ask your lender to reduce your repayments to the minimum.
It will allow you to access spare cash to pay off your ongoing living costs.
You may also want to consider converting from principal and interest to interest-only repayments if it is suitable for you, and your lender allows it.
If you are holding multiple properties, you may choose to sell one of them to manage your finances.
Alternatively, downsize the existing investment property and re-enter the property market.
However, this won’t be an ideal option for everyone. Here, our lending specialist can help evaluate your financial situation.
Manage your unsecured debts with the help of debt negotiation companies. They can talk with your creditors on your behalf and get them to accept more favourable terms.
Most lending institutions are willing to work with you if you are unable to make repayments. Hence, you can discuss it with them and apply for a hardship variation.
This usually includes:
However, it is strongly recommended that you discuss this with a financial adviser before proceeding with this option.
If you are currently struggling with your home loan repayments, we can point you in the right direction.
Call us or submit an enquiry to discuss your current situation.
We will help you with a free assessment and personalised recommendations.