Menu
Menu
Mortgage stress, in other words, indicates the financial stress experienced by those homeowners who spend more than 25 per cent of their income paying the home loan. Those going through mortgage stress perhaps struggle financially, seeing it tough to make ends meet, living from pay check to pay check. If you encounter a similar situation, here is a helpful guide to identifying mortgage stress and tips to help you tackle it.
Many factors lead to mortgage stress—for instance, not having an adequate budget to manage the spending or borrowing more than you can afford to pay back. Maybe your home loan is not structured efficiently. Moreover, unforeseen circumstances like job loss, inability to work, interest rate rise, illness or an unexpected expense can add more financial distress. Hence, it is easy to see why many homeowners experience loan stress.
Individuals who face mortgage stress typically feel trapped by a massive mortgage with many years of repayments ahead of them. Many fail to cover the day-to-day living cost, often resorting to paying bills using a personal loan or credit card, compounding their financial woes.
Rent Out A Room. It could be an option for some to help you cover your home loan repayments.
Downsize Your Home. Smaller places cost less; therefore, consider downsizing your home when looking for options to lower your mortgage repayments. Alternatively, you can move to a more affordable area if that is a possibility.
Have A Word With Your Mortgage Broker. It is always advisable to review your loan structure every couple of years. You always have an option to consult with your mortgage broker to help you restructure your loan repayments. You may be able to extend your loan term to reduce your repayment amount or refinance at a lower rate of interest.
Draw Up A Budget & Stick To It. It’s imperative to track down your spending and draw a realistic budget. You may also consider debt consolidation to save on high-interest charges.
Apply Hardship Variation. It is another option that you may look into to extend your mortgage term. Talk to your lender about repayment holiday or loan term extension as both could offer some much-required financial comfort.
Switch To Interest-only Loan Type. When you feel stuck, consider an interest-only mortgage type for the short term until you get back on your feet again.
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
