Are you concerned by the current financial situation, increased food costs and the effect it is having on your cashflow and you don’t know what to do? If you own your own home, there are options available to reduce outgoings and alleviate some of the pressure.
Some of the ways we can help include:
- Change your loan from principal and interest repayments to interest only repayments for a short term period. This can reduce repayments by 10% or more.
- Extend the term of your loan eg from a 25 year term to a 30 year term. This can reduce monthly repayments quite substantially.
- Take a ‘mortgage holiday’. Most lenders (on approval) will allow you to take a 3 month break from making mortgage repayments and the interest unpaid is added to your loan.
- Consolidate short term debt into your mortgage. When structured correctly, this can make a big reduction in your monthly outgoings.
- Do a small ‘top-up’ on your mortgage. It may be possible to get a small line of credit facility with your lender such as $10,000 - $20,000 for the next two years to help cover expenses and unexpected costs until your situation changes.
- Refinance your mortgage. If your existing lender is not helping you, it would be worth looking at other lenders.
- Check your life insurance policies. Sounds strange but one insurance company had a clause in some of their older policies giving generous guaranteed interest rate discounts on home loans if you had your mortgage with them also….call us for details.
If you would like to discuss any of the above information with us, please call Yes Mortgages on 823 4531. It is our goal to find financial solutions to suit our clients needs.