With so many Victorians currently learning to live more of their lives at home and coming to terms with reductions in income during the lock down, many people will be wondering about the best ways to manage their mortgage in these trying times. With this in mind, here’s a few tips on some simple strategies to help you reduce any mortgage stress during the lock down.
Do you qualify for government assistance?
Both the Federal and Victorian Governments have announced some substantial measures to support the economy. Whether you have been laid off from your job completely, or your hours have been reduced, there are different types of support available both directly and via your employer to help you get through this period.
The key first step is to ask for help, so jump online to see what is available, and don’t be shy about contacting Centrelink to register for assistance.
Talk to your Bank
If a change of circumstances has temporarily impacted on your ability to repay your mortgage, most of the Banks are taking a fairly cooperative approach to assisting their clients through these challenging times. Whilst a ‘repayment holiday’ won’t stop your interest accruing on your mortgage, it may give you a bit of breathing space while you get your finances sorted.
Get professional advice
Now more than ever is the time to seek professional financial advice to look at your current position and to develop a plan to deal with the lock down period and beyond.
Is refinancing the answer?
If you are currently unemployed, refinancing your mortgage may not be the answer. However, but if you still have an income, right now could be the ideal time to secure a better deal on your home loan. Lenders are very open to doing a deal at the moment, so if your current home loan interest rate has a ‘3’ in front of it, now could be the time to look at the number of loans which start with a ‘2’.
Of course, our recommendation for anyone looking at home loans is to talk to an experienced, independent Mortgage Broker first. Not only can they advise you on the best deals available, but they may even be able to negotiate with your existing lender on your behalf, and their service won’t cost you a cent.
The important thing to remember is that the team at Ian Reid Vendor Advocates is always here to provide you with experienced advice on any property matter. If you would like to chat with an Advocate, please call us on 9430 0000. You’ll also find lots of useful tips in our free booklet, “Fatal Real Estate Traps Exposed”.