With household costs on the rise, many mortgagees are struggling to balance their budgets. It’s not surprising more Australians are skipping mortgage payments to help make ends meet.

DON’T Scrimp ON LOAN Repayments

However, missing loan repayments could land you in a bigger hole. Not only will you be up for late fees – ranging from a manageable $9 to a stinging $195 per overdue payment – but you could be adding thousands of dollars of extra interest to your debt.

At worst, a string of missed mortgage payments could see the bank recalling your loan, forcing a fire sale of your home. Even a couple of missed payments could put a red flag on your credit history, which is going to cramp future borrowings.

One of the best ways to reduce the risk of mortgage stress is to give yourself a buffer on your budget. In Australia, it’s recommended borrowers’ mortgage repayments make up no more than 30% of household income. The problem is many home owners borrow to the edge of the threshold when interest rates are low – as they are now – leaving no room for inevitable rate rises and other increased living costs.

Instead, budget for mortgage repayments at a 9% interest rate, a long-term average that accounts for peaks and troughs over the long run. When rates are low, stick the extra funds into your mortgage. You will not only save on interest but will have established a safety net, which you can draw on if needed when rates run high.

If you are already feeling the pinch and struggling to make payments, talk to your broker sooner rather than later. A broker can help negotiate with the lender on your behalf and can look into other loan options to ease the squeeze.

Moving House Home Loans

Assured offers a wide range of home loans when you’re looking to move house, for all types of borrowers. With access to over 30 lenders, you’re simply spoilt for choice!

Interest Only Home Loan

Perfect for investors, an interest only mortgage will help you maximise the cash flow on your property.

Standard Variable Rate Home loan

A Standard Variable rate mortgage is traditionally the most popular type of home loan offering plenty of useful features and flexibility. The rate goes up and down depending on the market. A variable rate home loan can be linked to an offset account, helping to reduce your overall interest.

Standard fixed Rate Home Loan

Fixed rate mortgages are also popular with investors because they offer you the security of a fixed rate (which means set repayments) for a given period. This means you have the peace of mind when it comes to budgeting, knowing that your repayments are’nt’t going to change on you for the term you have selected. Fixed rates can range from 6 months to 10 years.

Basic Variable Rate Home Loan

A basic variable rate mortgage is simple to understand and easy to use and is ideal for borrowers who are looking to make minimum payments and require less flexibility than a standard variable rate loan.

Line of credit

A line of credit allows you to only pay interest on the money you actually utilise. These products allow you to utilise the equity in your property. You can use these funds for any personal purpose and like a credit card, any principal repaid is available to redraw.
This type of home loan is especially attractive to investors who need ready access to funds.

Low Doc loan

A Low Doc loan (low documentation) requires a declaration and BAS statement. They usually come with a higher interest rate. Assured offers a broad range of low doc loans, which are ideally suited to self-employed people unable to provide evidence of income.

Construction Home Loan

A great option for investing in property is to build. Assured Home Loans offers a range of construction home loans for investors. Construction loans are generally interest only for the building period, but then you are able to select from a variable rate, fixed rate home loan, line of credit and so on.

Low Doc loan

A Low Doc loan (low documentation) requires a declaration and BAS statement. They usually come with a higher interest rate. Assured offers a broad range of low doc loans, which are ideally suited to self-employed people unable to provide evidence of income.

Assured makes applying for a home loan easy