5 tips for getting on top of your mortgage repayments

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If you’re struggling to cover your mortgage repayments and other living expenses, you’re not alone.

Data by Roy Morgan revealed that more Australian homeowners were “at risk” of mortgage stress over the three months to January than ever before. If you’re wondering how you’ll afford your next mortgage repayment, here are some tips for getting on top of your finances.

1) Reassess your budget

Many households are already stretched thin at the moment but there’s no better time to see where you can cut even more expenses.

Can you do without the gym membership? Maybe you don’t need five subscriptions to different streaming platforms?

Start cutting costs and saving a buffer for your mortgage repayments.

2) Shop around

Ten minutes of your time spent making a few phone calls to your utility and service, or health insurance providers to see if you can get a better deal could save you money in the long run.

Go through your expenses and try to negotiate a more competitive rate. Be sure to see what competitors are offering too.

3) Boost your income

Realistically, there is only so much you can save. Another way to boost your savings is to establish an additional income stream. Think about starting a side job, renting out assets, or selling some of the unused items sitting around the house.

If you’re feeling game and you think you deserve it, perhaps you could ask your boss for a pay rise. You never know your luck!

4) Get us to review your interest rate

Don’t assume your current loan is the be all and end all. There are loads of different lenders with different home loans out there. Speak to us to explore all of your options.

We may be able to negotiate a more competitive interest rate with your current lender or point you in the direction of another bank with a loan that’s more suitable for your needs.

5) Reach out to your lender

If you are struggling, it’s best to contact your lender sooner rather than later. Let them know where you’re at.

Your lender may be able to waive fees, discount your interest rate or restructure your repayments to support you in managing your loan. If you have an offset account or redraw facility, you may be able to use those funds for your repayments.

What happens if you default?

If you’ve already fallen behind in mortgage repayments, your bank may give you a grace period of a couple of weeks to catch up. However, if you don’t make the repayment, you will have defaulted on your mortgage.

At that point, you may be stung with fees and your mortgage default may be recorded on your credit rating. This could impact your ability to borrow money in the future.

You may be issued with a default notice to pay the lender within a certain timeframe. If this doesn’t happen, the lender may repossess the property and sell it to recoup the debt.

The bottom line is: try to stay on top of your mortgage repayments and avoid defaulting if possible.

We’re here to help

We hope you’ve found these tips helpful. If you’re feeling stressed with making your mortgage repayments, get in touch today to chat through your home loan options.

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Kristin Harris
Kristin Harris
22:36 10 Feb 21
Ryan made my refinance a breeze. He kept me completely up to date every step of the way. He was extremely responsive and very diligent. Ryan has great knowledge about all mortgage needs and I would highly recommend Ryan... for any mortgage or refinance needs.read more
Rabie Abou Fakher
Rabie Abou Fakher
09:16 07 Feb 21
If you are looking for an honest down to earth broker then you have found the one. Ryan has assisted us through our home loan application for the best part of 10 months. Ryan has explained things in an easy to... understand language, prompt reply to communication, genuine cares about his clients and most important of all caters to your individual needs. Finally thank you again for helping us and I will certainly deal with you again for future loans.read more
Elizabeth Lewis
Elizabeth Lewis
08:20 27 Jan 21
Ryan has been an excellent broker during the purchase of my first home. Always available for advice when needed, great and fast communication. His liaison between the bank and myself has been great. Thanks for all the... help Ryan.read more
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John Luka
06:11 14 Jan 21
Ryan His the best ever the best word to describe him when he do his job he do for him self not for the client he working hard he tried to make clients happy specially family like my family he did big miracle for us... after many broker advised we can’t get the home loan only Ryan he did for us I recommend him for every oneread more
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Tony Bejjani
05:46 14 Jan 21
Ive dealt with several brokers and never imagined an experience so pleasant and stress free . We got a fleet for our business with beyond exceptional service and superb rates . Ryan was the most knowledgeable person i... have dealt with and i cant recommend the team at Bspoke finance enough. We just moved into our dream home thanks to his amazing work . Thank-you from both tony and beam . Your magicread more
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