Mortgage stress affects many people, and it’s not just interest rate rises which cause it.
Often an unexpected event, such as unemployment, illness, injury or a relationship breakdown can also bring on mortgage stress.
To prevent mortgage stress in the first place, it’s a good idea to created a budget based on your current financial situation and goals. In addition, try to build a ‘buffer’ into your home loan by making additional repayments wherever possible – tax return time, an inheritance or a gift are often useful for this.
However, if you do find yourself experiencing mortgage stress, talk to your mortgage broker immediately. Your mortgage broker can speak to your lender on your behalf, and may be able to negotiate options such as extending your loan term or taking a repayment holiday.
Failing that, a good mortgage broker can assist you in consolidating your debt or refinancing your home loan.
Source: loanmarket.com.au
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