5 tips for getting on top of your mortgage repayments

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 if you’re struggling

If you are having difficulty making your repayments or are at risk of defaulting, contact your lender’s hardship team. It’s best to do this early before the situation gets worse.

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, please contact us for assistance today to chat through your home loan options.

The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person's particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only. Although every effort has been made to verify the accuracy of the information contained on this website, Infocus, its officers, representatives, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

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