How can I legally stop paying my mortgage?
Mortgages are expensive. The average mortgage loan in Australia is over $500,000 and rises each year. Property values are also expensive in Australia, leading to high-interest rates and repayments each month. It is not uncommon to see a borrower pay up to $2500 for each repayment. There are a few ways to legally stop paying a mortgage. Application for financial hardship for up to six months which will freeze your mortgage (interest still applies, so you end up paying “interest on interest”). Granting financial hardship was common during the global pandemic as many Australians lost their jobs.
Mortgage lenders and banks also offer financial help like skipping repayments for up to 2 months. Just because you skip a repayment on your mortgage, does not mean that the money vanishes. Instead, the repayments are added to the end of your loan and the term is extended. Skipping repayments is a temporary solution and should not be continuously repeated as it messes with the original terms. However, we understand that life happens. Sometimes you lose a job or have an unexpected medical emergency.
The only way to stop paying a mortgage is to complete the mortgage. As soon as you make your last repayment on the mortgage, it is complete, and the property is under your name. If you are struggling to repay a mortgage and the repayments each month are too expensive, you can try refinancing with a different lender.
Legally Stop Mortgage Conclusion
Did you know that Mortgage House offers competitive interest rates for homes? On our website, you can find competitive interest rates listed directly. We value transparency and want to help you with your mortgage and home buying experience. In conclusion, it is not easy or possible to legally stop paying your mortgage until it is complete. To legally stop paying your mortgage, speak directly with your mortgage lender or bank as they can offer specific solutions.