30 Jun 2022

Can I skip two mortgage payments?

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You can skip and miss two mortgage repayments, however, this does not reflect positively on your credit score and can affect you the next time you apply for a loan. The information is documented and sent to Australia’s official credit bureau. 

The only acceptable time that skipping two mortgage repayments is allowed is if you are refinancing your loan. When refinancing a loan, this pushes the repayments to the new loan. How so? Well, when you sign the papers for a new loan, there is no need to pay the current or next month’s repayment on the old loan. Instead, these repayments are ‘skipped’.

Skipping mortgage repayments legally is not the same as missing two repayments, though. When you miss one, a warning letter is sent to your home and online message box, if it is set up. The warning letter details exactly how much is owed and when you need to pay it.

The thing about missing two mortgage repayments is this allows lenders to pursue legal action against you to get their money. Once you repay a missed loan repayment, apply for hardship help or official mortgage skipping. The term and months do increase, but it can save your credit score from moving down!

Skipping Two Mortgage Payments Conclusion

There is only one acceptable reason you should skip two mortgage repayments when you have entered a new contract by refinancing your old home loan. However, the repayments are not entirely erased, instead, they are skipped and ‘added’ to the new refinanced loan.

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