Experts have reported that by the end of September 2018 there were over one million households across Australia that fell into mortgage stress. Summerland Branch Manager, Graeme Herne, who has over 30 years of experience in the industry, offers tips on how you can reduce your home loan anxiety.
- Speak to your home loan lender about options and adjusting your monthly repayments. We can have a look at your overall financial position, and look at restructuring your loan to make your repayments more affordable.
- If you’re worried about interest rates going up in the near future you could consider getting a fixed rate home loan, which would provide you some comfort in the knowledge that your repayments will remain the same for the fixed rate term.
- If you’re coming to the end of an interest only loan, shop around for alternative options. There are always plenty of competitive rates out there, and you can often save yourself some money which in turn will reduce your payments.
- Consider an offset home loan which has a savings account linked to it to offset the balance of the overall loan. Credit funds held in the savings account are offset against the loan balance when interest is calculated. You would then obtain interest benefit on the savings at the equivalent rate being applied to the associated loan and the interest benefit is not taxable.
- Review your credit card commitments and look at converting your high interest card to a low rate, no frills card.
- If you have an appointment with a new financial institution, make sure you organise all the necessary documents before that meeting. It will save you any undue stress and assist with your application. Below is a list of the documents you may need:
- Confirmation of income
- Statements on all loan and financial commitments
- A living expenses budget to detail your spending habits
You may be required to provide further documentation depending on your circumstances.
- Review your personal/family budget to see if you can reduce your living costs. Expenses such as your mobile phone, electricity and internet bills can generally be negotiated with your supplier. Putting on hold television and magazine subscriptions and gym memberships are additional ways of cutting costs efficiently also.
- Don’t put it off! We appreciate life gets busy, so if you do experience financial difficulty, speak to your financial institution at the earliest opportunity. As human beings firstly, and specialists in banking, we can empathise with your situation.
For a tailored plan to suit your needs, book an appointment to talk to one of our friendly Banking Specialists.
This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner.
