Does deferring a mortgage payment hurt credit?
Deferring a mortgage payment is not for everyone. This is only a choice that some banks and lenders are offering long customers that are struggling to pay their bills because of a loss of income due to the global pandemic, Covid-19.
Instead of focusing on deferring your mortgage as a solution, it is best to focus on finding alternative ways to pay or refinancing solutions. There are also other Australian organisations and government agencies that provide relief and financial counselling to those struggling to pay their mortgages on time.
Not repaying your mortgage on time can cause your credit report to decrease, as it shows negatively. However, it is worse to not pay the mortgage at all. The best option, though, is to speak with your bank or lender in charge of the loan. Their experts are knowledgeable and can give you options.
If you qualify for a mortgage deferral because of Covid-19, your credit won’t be hurt since it is a unique circumstance.
Deferring Mortgage and Credit Conclusion
Instead of deferring the mortgage repayment, there are other solutions to protect your credit as well as your home. For instance, speaking to your creditor can give you different options for your specific situation. There is a hardship variation form that is easy to fill out, but it takes up to 21 days for the officer to make a decision. Mortgage House lenders understand that financial struggles happen and are ready to discuss options!