Managing mortgage stress
Home loans generally stretch over a period of 25-30 years, and interest rates will almost certainly fluctuate over this period. More than likely your financial situation will too, and in some instances you may experience mortgage stress. Options for managing and avoiding mortgage stress include: looking at different products, protecting your debt, and talking to your bank.
If you are trying to ease mortgage stress in the future, a long-term fixed rate may be worth considering. This option puts a ceiling on your repayments, and can be locked in for up to five years.
Don’t rule out loan protection plans as there are basic insurances that can protect you - and your mortgage - in the event your life changes and you can’t meet your payments.
And finally, don’t be afraid to talk to your lender or broker. If you’re stressed financially, have an open and frank discussion with your bank - and the earlier you do it, the better. Your mortgage broker can help guide the conversation. Or even better, we may be able to find you a solution before hardship really sets in.
If you have any questions on your current mortgage or wish to discuss options for reviewing your loan, please give us an obligation free call.