HomeLoanFinder press release – 35% OF AUSSIES STRESSED ABOUT MORTGAGE REPAYMENTS
35% of Australians have experienced stress relating to their mortgage in the last 12 months, according to a survey released today by HomeLoanFinder.com.au. 15.6% say there have been months when they weren’t even sure that they could make the repayments on their home. 10.4% attribute this stress to the fact that they were recently forced to take a pay cut, and 9.1% say they struggle to manage a busy social life and pay their mortgage.
When it comes to meeting mortgage repayments, Australians are most concerned about rising utility bills, job security, interest rates and managing a budget.
In order to manage their loan more effectively, 42.7% of survey respondents said they would be willing to sacrifice a holiday, whilst 29% eat out less in order to relieve some of this stress. 15.2% said they would go as far as renting a room out in their home in order to bring in some extra dollars to cover the payments.
Jeremy Cabral, Publisher of HomeLoanFinder.com.au says, “Mortgage related stress affects so many of us but there are ways to handle this effectively and not let it take charge of everyday life. Recognising that you’re struggling with repayments is the first step to taking control of the situation. By making some key lifestyle and personal finance choices, Australians can relieve the stress and get their mortgage repayments in order.”
Mr. Cabral says the following five tips can help Australians stay in a healthy mortgage state of mind and keep stress at bay:
1. Create a budget
It is encouraged that you create a budget so it is easier to monitor your costs and understand the money coming in and out of your household. Based on that, think about your priorities and identify what you need for basic living expenses and which are extras. It can be worth cutting back on extras and putting them towards your mortgage repayments.
2. Meet with your bank
Set up an appointment with your bank and explain your financial situation and that you are experiencing hardship in repaying your home loan. Discuss the following options with them to see if they can offer you a solution:
o Negotiating a lower interest rate on your home loan.
o Asking your lender for a hardship variation to temporarily reduce your payments or delay payments. Agreeing to postpone your repayments for an agreed period.
Depending on the circumstances, it is possible to negotiate a way to make it more affordable.
3. Temporarily change how you pay your home loan
If your credit rating has taken a hit recently, you might want to hold off a complete loan refinance as you might not be able to switch to the best loan for you right now. Instead, you can switch your payment type on your loan to interest only, if that’s an option from your lender. Consider it a temporary reduction in your repayments until you sort out your financial troubles.
4. Shop around
Do your homework and look at all your options. Research online and talk to other financial institutions that might be willing to offer you a better deal. Visit HomeLoanFinder.com.au to compare the latest home loans on the market and find a better deal to suit your needs. It is crucial that you calculate whether the benefits outweigh the penalty costs you might have to pay for switching. You might find a way to come out on top.
5. Pay extra
Paying a little extra each month on your mortgage can make a huge difference in the long run. If you find that you have a little extra room in your budget, put that towards your mortgage repayments. Paying that little extra now, while you can, means you can cut back down the track if you need to without facing major penalties. This strategy is very effective when combined with an offset account facility.
“Don’t put up with mortgage related stress. Take the necessary steps to secure peace of mind while also making repayments on time,” says Mr. Cabral.
HomeLoanFinder.com.au is a free service for comparing home loans and finance products available to Australian mortgage borrowers.
For further information, images or to interview Jeremy Cabral contact:
Michelle Simmonds at Agent99 PR on 02 9779 0999 / 0404 808 144 or [email protected]