Finance focus
5 tips for getting on top of your mortgage repayments

If you’re struggling to cover your mortgage repayments and other living expenses, you’re not alone.

Data by Roy Morgan revealed that more Australian homeowners were “at risk” of mortgage stress over the three months to January than ever before. If you’re wondering how you’ll afford your next mortgage repayment, here are some tips for getting on top of your finances.

1) Reassess your budget

Many households are already stretched thin at the moment but there’s no better time to see where you can cut even more expenses.

Can you do without the gym membership? Maybe you don’t need five subscriptions to different streaming platforms?

Start cutting costs and saving a buffer for your mortgage repayments.

2) Shop around

Ten minutes of your time spent making a few phone calls to your utility and service, or health insurance providers to see if you can get a better deal could save you money in the long run.

Go through your expenses and try to negotiate a more competitive rate. Be sure to see what competitors are offering too.

3) Boost your income

Realistically, there is only so much you can save. Another way to boost your savings is to establish an additional income stream. Think about starting a side job, renting out assets, or selling some of the unused items sitting around the house.

If you’re feeling game and you think you deserve it, perhaps you could ask your boss for a pay rise. You never know your luck!

4) Get us to review your interest rate

Don’t assume your current loan is the be all and end all. There are loads of different lenders with different home loans out there. Speak to us to explore all of your options.

We may be able to negotiate a more competitive interest rate with your current lender or point you in the direction of another bank with a loan that’s more suitable for your needs.

5) Reach out if you’re struggling

If you are having difficulty making your repayments or are at risk of defaulting, get in touch with your lender’s hardship team. It’s best to do this early, before the situation gets worse.

What happens if you default?

If you’ve already fallen behind in mortgage repayments, your bank may give you a grace period of a couple of weeks to catch up. However, if you don’t make the repayment, you will have defaulted on your mortgage.

At that point, you may be stung with fees and your mortgage default may be recorded on your credit rating. This could impact your ability to borrow money in the future.

You may be issued with a default notice to pay the lender within a certain timeframe. If this doesn’t happen, the lender may repossess the property and sell it to recoup the debt.

The bottom line is, try to stay on top of your mortgage repayments and avoid defaulting if possible.

We’re here to help

We hope you’ve found these tips helpful. If you’re feeling stressed with making your mortgage repayments, get in touch today to chat through your home loan options.

The information provided is general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.